BT’s legal subsidiary reduced losses to £9,000 in its first year trading as an alternative business structure, accounts have revealed.
BT Law Limited brought in £75,000 in revenue for the year ending 31 March 2014, compared with £15,000 the year before.
The company, wholly owned by the telecommunications giant, had made a pre-tax loss of £77,000 in 2012/13 but cut that figure to £9,000 in 2013/14.
BT Law was granted an ABS licence by the Solicitors Regulation Authority in March 2013, initially to offer claims-handling services involving BT’s own vehicles.
In accounts filed with Companies House, it was revealed the company is handling more than 6,000 motor claims a year from a fleet of 45,000 commercial and non-commercial vehicles.
In addition, it offers legal services in 5,800 public liability claims and 350 employers’ liability accident and disease claims.
The company reports it is offering employment law advice to a UK-wide workforce of 89,000 and handling 300 tribunal claims for external clients.
It also uses BT’s in-house team of more than 110 legal and support staff to provide services to external clients.
The accounts say the directors are satisfied the company will continue to receive financial backing from the BT group for at least the next year.
The launch of BT Law followed on from its acquisition of legal technology provider Tikit.
When ABS status was granted, BT said it would focus on motor claims, with plans to grow over the coming years and expand into public liability and employment law. The accounts suggest these plans have been accelerated.
The new business unit opened offices in three locations: London, Bletchley and Sheffield, and appointed BT's former head of litigation Miles Jobling as director.