Employee-owned firm reports profit boost in first full year

One of the biggest firms to have opted for employee ownership has revealed significant increases in profit and turnover under the new model. 

Hudgell Solicitors, which was sold to an employee ownership trust in December 2023, this week published its accounts for the year to March 2025, showing pre-tax profit rising by 10% to £5.6m and turnover jumping by 46% to £21.1m.

Neil Hudgell, who remained a director following the sale, said the business had been boosted by its first full year of employee ownership, as well as the handling of high-profile group action cases such as the Post Office and acting for victims of the Manchester terrorist attack.

He added: ‘The company has a clear strategy for the services it provides in its chosen markets, underpinned by its common purpose of righting wrongs. The significance of the injustice and vulnerability of victims drives our direction. Continued enhancement of the company’s brand supports that strategy, and organic traffic, leads and conversation rate all improved year on year. Successful and high-profile representation of clients creates a virtuous circle in support of our brand, which brings benefits across the entire business.’

The company increased its cash reserves from £1.3m to £4.8m, while net assets rose by 34% to £3.5m.

The highest paid director received £2.2m during the year. The accounts also reveal for the first time that when 98% of the share capital was sold to the employee ownership trust, the deal was worth a total of £14.1m. This included £5.6m settled in cash and the outstanding amount paid by loan notes.

In July this year, the accounts reveal, the firm acquired the clinical negligence team and work of Newcastle firm Freemans Solicitors. This involved an initial payment of around £326,000, with the remaining amount payable based on cases being successful. Hudgells said at the time that it wanted to quickly expand the number of staff employed in the north east.

The firm was established by Neil Hudgell in 1997 and now has offices in Hull, Manchester and Newcastle. Hudgell is well known in his native city, chairing rugby league team Hull KR for more than 25 years. Earlier this year the club celebrated its first Challenge Cup win since 1980.