The owner of new-model firms Taylor Rose, FDR Law and Kingsley Wood has reported a big rise in core profits - nearly half attributable to interest on client account. However privately-held AIIC Holdings was upbeat on future prospects for its technology-enabled practice despite the threat of a government levy on interest income.
In the year to 30 September 2025, AIIC reported adjusted profit before tax up 118% to £9.6 million on revenue up 27.4% to £124 million. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 64.9% to £12.2m. EBITDA excluding client interest was £5.5m.
In a statement today, the company said growth was driven by continued momentum in the consultant-led model, with the number of consultant fee-earners increasing to 981 during the year. It has subsequently risen beyond 1,000, alongside its division of fully employed lawyers.
During the financial year AIIC invested more than £10.5m in IT, £4m up on the previous year. The investment includes 'several millions of pounds-worth' of one-off costs related to its programme to run every part of the organisation on a single digital ecosystem, operating entirely in the cloud. Costs of running both new and legacy systems hit EBITDA in the second half of 2025, but the transition is expected to complete by the end of this financial year. IT transformation will put the business in a much stronger position to onboard new lawyers - or entire firms, in the event of future M&A activity, the company said.
Noting 'ongoing uncertainty' around the future of client interest income following the Ministry of Justice's consultation on a levy, the AIIC board reiterated its confidence in its operating model, technology strategy and medium‑term growth prospects. 'While interest earned on client funds continues to represent a component of reported EBITDA, the group noted that its underlying profitability and cash generation have strengthened materially regardless of client interest, and despite significant ongoing investment in its IT transformation programme designed to help it prosper long into the future.'
Adrian Jaggard, chief executive of AIIC Group, said: 'FY2025 was a year of strong operational progress. The performance of our core business has strengthened materially, even as we deliberately reinvested significant sums into our IT transformation. We have chosen to absorb those costs now in order to build a more efficient, scalable and resilient business for the long-term, and the benefits of that approach are becoming increasingly evident.'
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