NewLaw seeks further ABS links but wary of PI reforms
A law firm has said it wants to open more alternative business structures after establishing links with several big-name new entrants to legal services.
Cardiff practice NewLaw entered into an ABS arrangement with doctors’ union the British Medical Association last year, and today confirmed it will be in partnership from April with the Royal College of Nursing.
RCN Law LLP was incorporated in September and is led by NewLaw managing director Philip Dicken.
BMA Law Limited already provides a full-service legal offering either by a three-person panel of lawyers at the BMA or through a supplier arrangement with law firms across the UK.
Redde PLC, which owns NewLaw, confirmed it is seeking further partnerships in its interim results statement to the London Stock Exchange today.
‘NewLaw has continued to build its range of services and pursue the additional opportunities available to it as the group expands its reach into the marketplace,’ said the statement.
‘NewLaw continues to pursue other opportunities for partnerships with insurers and other related brands via ABSs.’
The statement showed Redde, which also operates vehicle fleet services and owns claims management specialist FMG, increased pre-tax profit for the last six months of 2015 by 51% to £17.3m. Turnover increased 35.4% to £165.2m.
The board announced it has declared an interim dividend of 4.5p per share for 2015, compared to 4p in 2014. The share price today rose 5.2% to 191.5p per share on the basis of the announcement.
Martin Ward, chief executive, said the group has delivered ‘significant growth’ in revenue, earnings and dividend.
‘The start of the second half has been strong and we continue to see new growth opportunities from within our markets. The group is increasingly being seen as a leading partner of choice within our industry.’
Redde’s statement noted that the government continues to look at the overall costs of litigation and may bring in new rules to reduce the costs recoverable in certain types of actions.
‘[These] might have an impact on the profit costs of the group’s legal businesses and/or increase the cost of recovering credit charges,’ added the company.