Over the past couple of years the UK legal market has seen a revolution in the delivery of legal services, but as the Co-operative Group’s legal arm’s half-year results confirm, it is the nature of revolutions not to run smoothly.
The results have revealed a £5.1m loss in the 26 weeks up to 5 July, a 66 per cent bigger loss than at the same time last year, when Co-operative Legal Services (CLS) posted a £3.4m loss. Half-year 2014 turnover stood at £13m, with a full year projection of around £23m.
CLS currently employs around 400 people, and some 75 per cent of that are fee-earners, making a revenue per fee-earner of £77,000. As we report today, while CLS was the first ABS to be approved by the SRA in January 2012, it’s fair to say that it has seen its performance plummet compared to the months after it was established, when it turned a profit of £700,000.
Then again, as with all good revolutions and their impact, maybe it’s simply too early to say.
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