The UK arm of legal document specialist Rocket Lawyer has said it is continuing to build its business after its first accounts revealed that it relies on its US parent for funding.
Rocket Lawyer, one of the US’s most recognised legal brands, launched in the UK in December 2012.
Abbreviated accounts for the year ending December 2013 were published with Companies House this week. The balance sheet shows that Rocket Lawyer UK’s total liabilities exceeded its total assets by £1.98m. Of the liabilities, the vast majority were from creditors due to be paid after more than one year.
In December 2013, the company’s assets were £74,000 – down from £109,000 the year before.
The accounts said the company ‘relies on the ongoing support’ of its parent company, which has agreed not to seek repayment of its loan until working capital permits. The US parent will support the company’s trading position ‘for the foreseeable future’.
The accounts revealed an interim review of the group’s finance in September 2014 identified an ‘excess of liabilities over assets’. However, director Charles Moore said future funding requirements will be met through the support of its bankers, shareholders and future trading profits.
The company launched with the express intention to bring about the ‘democratisation of the global legal marketplace’. Its website combines legal documents and free legal information with access to a panel of solicitor firms.
According to its last press release, in August 2013, a £25 package gave clients access to unlimited legal documents, one free 30-minute consultation with an on-call lawyer per month and a discount of up to 33% on legal fees.
Mark Edwards (pictured), vice-president and general manager of Rocket Lawyer UK, said 2013 had been the first full year operating in this country and so efforts were concentrated on investment to build the business.
‘A year later we are now very much focused on continuing to grow our customer base and revenue,’ he added.