A claims firm has pointed to a ‘significant reservoir’ of future revenue from its current caseload despite a year in which seven-figure losses were recorded.
Manchester firm Veritas Solicitors said in its members’ report, accompanying the latest financial statements, that it expects to make £134m if existing matters are successfully settled.
The firm continues to grow its housing disrepair and financial mis-selling claims, enabled by investment in technology, and said it has implemented ‘a number of strategic litigation initiatives designed to maximise legal recovery opportunities and strengthen future revenue generation’.
It added that the financial statements did not capture the ‘substantial economic value’ of the active caseload and that the underlying work in progress remained ‘exceptionally strong’. The business’s strategy is to grow processed claims by 40-50% every year.
Veritas reported that for the year to 29 November 2025, turnover fell by 8% to around £9m, while operating losses more than doubled to £4.8m. The business owed £63.9m and was operating with net liabilities of £30m – up from £23m the year before.
The average number of people employed during the year fell from 177 to 145.
Long-term loans are secured by fixed and floating charges with litigation funder Claim Finance & Administration Co Limited over the property and assets of the business. Claim Finance is based in Dublin and trades as Nera Capital. Interest on these facilities is charged at around 38% a year but is contingent on the successful resolution of the underlying legal cases during the term.
There is also a short term loan with Denmark Square Ltd (trading as Money & Co) for £400,000 and with a 10.8% commission charged on the amount drawn down. Further smaller loans agreements have been made with White Oak (£22,000, with interest charged at 28%) and Close Brothers (£100,000 to fund the Veritas professional indemnity insurance premium).
After the reporting date, the LLP entered into advanced negotiations over a significant restructuring of some litigation funding arrangements. This would result in transferring certain rights to future proceeds from lender-funded claims.
The accounts state that one of Veritas’ biggest debtors, I Quote Limited, owed the firm £13.8m and reduced the balance by around £750,000 in February this year. I Quote has since informed the LLP that its current cash flow does not permit further payments and Veritas’ members continue to be in discussions about the debt.
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