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Slater & Gordon unveils £20m UK profits in revised accounts

Following controversy after its £637m purchase of Quindell’s Professional Services Division (PSD), Australian-listed Slater & Gordon (S&G) has revealed a revised version of its accounts following an audit of its UK business, which shows profit after tax of nearly £20m on revenue of £128m for the 2014/15 financial year.

Published on the September 30 deadline for listed companies to provide financial statements, the firm said 80% of its UK income derived from personal injury work, while its Australia operation saw a net profit of £21m on income of £145m.

After re-branding the PSD, which it purchased from Quindell in May this year, as Slater Gordon Solutions (SGS), the first month of SGS brought in £17m of income, at a net loss of £2.1m. The firm said an audit by EY had identified various adjustments and corrections to its financial results for the 2014/15 and 2013/14 years.

The Quindell acquisition has been under heavy scrutiny over alleged impropriety in relation to the latter’s accounting practices, and the Serious Fraud Office confirmed this summer it was investigating the company when it owned the division after the company published revised annual accounts for 2014 showing a £312m swing from profit to loss.

A statement issued yesterday by S&G said: ‘In the course of preparing these financial statements, the directors have sought to identify, understand and properly account for all relevant prior transactions undertaken by entities within SGS. Despite reasonable inquiries, including of current directors of Quindell, the directors are unable to identify or rationalise every historic transaction undertaken by the former directors. The directors believe that none of the known transactions relate to the fundamental business activities or economics of SGS.’