A listed owner of personal injury firms will go into next year’s reforms on the back of impressive financial results.
Redde plc, which owns south west firm NewLaw and alternative business structure Your Law, yesterday reported pre-tax profits up by 7% to £49m in the year ending 30 June. Revenue was up 12% to £590m.
Although regarded as a market leader in accident management, the group has moved gradually into legal services in recent years, culminating in the launch of Your Law last year alongside National Accident Helpline.
The accounts show profits from the legal services arm more than doublingm from £2.2m to £5.3m in the year.
Redde reported to the London Stock Exchange that its latest legal business has showed ‘encouraging progress’ and continued to build its caseload and levels of settlement. This has resulted in a greater proportion of cases from outside the RTA claims sector, which is affected by the Civil Liability Act reforms coming into force next April.
While the business has diversified, Redde confirmed it is investing in IT systems to provide a customer portal that will integrate with the system being created by the Ministry of Justice. This investment is intended to ‘provide efficiencies to deal with low-value claims after the reforms take effect’.
Redde also confirmed that during the year it completed the consolidation of all NewLaw operations into its Cardiff building. That process ended up costing the company £900,000.
The company is paying shareholders an unchanged dividend of 11.65p this year. Shares rose almost 5% following the announcement, opening at 114p today.