Slater & Gordon’s numerous acquisitions are expected to more than double the firm’s UK revenue in 2014, according to the firm’s half-year results presentation to the Australian Stock Exchange (ASX).
Its UK practice raked in £35m (A$61.4m) in the first half of its 2013/14 financial year, which ran from 1 July 2013 to 31 December 2013. The sum marks a 78.6 per cent increase on the £19.6m (A$34.3m) revenue generated during the same period in 2012/13.
Slater & Gordon’s (S&G’s) UK net profit also more than doubled, from £2m (A$3.5m) in the first six months of 2012/13 to £4.2m (A$7.3m) in 2013/14.
The UK subsidiary generated 35 per cent of S&G’s £101.6m (A$178.3m) revenue for the half year, compared with 23 per cent, or £83.1m (A$145.8m), for the same period last year.
The firm said it hoped that its recent acquisitions would bolster UK revenue by a further £40.2m (A$70.5m) by the end of the financial year, bringing total UK revenue to £88.4m (A$155m) by the end of June. If the firm achieves the target, the UK subsidiary would generate 39.2 per cent of the firm’s global revenue target of £225.2m (A$395m).
The Australian-headquartered firm made a raft of acquisitions in the first half of 2013/14. It added Taylor Vinters’ PI practice (19 August 2013), Goodmans (30 August 2013), and John Pickering & Partners (24 October 2013) to its business between August and November 2013. It is estimated that the trio will bring in £10.3m over the course of the year.
Fentons, which was added in September 2013, is expected to generate £27.7m in 2013/14 (21 August 2013).
Meanwhile, the firm suggests Pannone will bring on board about £34.5m during the period.
The firm’s work in progress (WIP) days stayed relatively static in Australia at 412 compared with 414 previously. However, WIP rocketed in the UK, jumping from 233 days in 2012/13 to 326 in 2013/14.
The firm used an average conversion rate of £1 to AUS$0.57 for the first half of the 2013/14 financial year.