National firm Slater and Gordon has announced a modest profit following years of multi-million pound losses.
For the period ending 31 December 2018, the firm reported an adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of £1m. The firm generated revenues of £222.7m, down 4% on the 2016/17 year, which ended in June 2017.
Last year was the business’s first year after cutting ties with its former parent, the Australian stock exchange-listed Slater and Gordon Limited. The England and Wales firm is now owned by New York hedge fund Anchorage Capital Group.
In its results statement Slater and Gordon said 2019 is proving similarly successful as the business ‘continues to grow in strength and profitability under a new leadership team and as it invests in new technologies to digitalise legal services and focuses on delivering excellence in customer care’.
At its lowest point in 2015/16, the business lost £400m in a year as the acquisition of the professional services division of Quindell plc backfired spectacularly, wiping out most of the value of the company.
For the year ending June 2017, the firm lost more than £52m while revenues plummeted by 27%. Headcount had come down by June 2017 by almost 500 to 3,176 and it is believed to have fallen further.
CEO David Whitmore said: ‘2018 was a significant year for Slater and Gordon, as we returned to profit. We’ve achieved a huge amount and our success reflects the underlying strength of our proposition. In the last 18 months we have strengthened the leadership team, bringing in a wealth of experience and skills from inside and outside of the legal sector.’
The firm has invested £6.7m in technology and has hired a team of data scientists to help with resourcing and planning.