High profile class action firm Pogust Goodhead made a loss of £91 million in 2023, newly published overdue accounts have revealed. A statement of financial position for PGMBM Law Ltd as of 31 December 2023 filed at Companies House nearly a year late shows net current liabilities of £93.15m, up from £2.5m the previous year.
As in previous years, the accounts are filed under the small companies scheme. They are signed by Alinia Roberts, who took over as chief executive following the departure of co-founder Tom Goodhead over the summer.
Notes to the financial statement say that the position 'is consistent with expectations and aligns with the company's growth strategy'. The loss is due to the company's loan obligations being recorded immediately while revenue is recognised only when it is reliably measurable.
'Comprehensive cash flow forecasts through to December 2026' indicate that the company will be able to meet its working capital requirements and settle obligations for at least a year, the notes add. However as cash flows are 'not entirely within the control of the directors there is a material uncertainty regarding going concern'.
The auditors' report draws attention to the 'material uncertainty in respect of future cashflows due to the unpredictable nature of future case settlements.'
During calendar 2023 the company employed 241 people excluding directors; the highest paid director received total remuneration of £283,573, up from £231,018 the previous year.
Pogust Goodhead is currently awaiting judgment in the Mariana dam litigation against mining giant BHP. Earlier this week it applied to the High Court to be replaced as co-lead in the so-called 'dieselgate' collective action, hearings for which are due to open later this month.
A spokesperson said: 'The recently filed accounts for PGMBM Law Ltd cover 2023 and whilst it doesn't present the full financial position of the PG UK Group, it confirms the group's financial and commercial viability. We remain fully confident in the firm’s financial strength and long-term stability, which have been thoroughly validated through a comprehensive 12-month cash flow forecast. PG continues to enjoy the full support of all our funders, who have reaffirmed their confidence in the firm’s leadership, strategic direction, and long-term success.'
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