Lawyers on Demand’s (LoD) first set of accounts since being spun off from Berwin Leighton Paisner (BLP) reveal that the firm gave LoD a £2.65m loan to allow it to acquire 20 per cent of the business for £2.8m.
The BLP loan was omitted from the business’ first accounts filing but included in an amended version of the accounts released last month. It reveals that BLP initally loaned £2.65m to LoD in 2012, a figure that will rise to £2.95m by 2015.
The accounts, which cover the 2012/13 financial year, show that the legal resourcing business posted revenues of £7.9m and made a profit of £172,000 in 2012/13 but has strong financial ties to BLP.
BLP retains an 80 per cent stake in LoD and has four directors on the board. Currently the service is based around two services: LoD On Site and LoD On Call, which offers contract lawyers to in-house teams for set periods of time (24 May 2012).
During the year, LoD made sales of £1.8m to BLP and its subsidiaries and at April 2013 £215,000 to the business was owed by these companies.
Before separating LoD from BLP, it raised £100,000 through issuing shares and £2.7m of loan stock leading to an increase of £664,000 for the financial period. But that also led to a final net debt of £2.3m over the 12-month period from March 2012 to April 2013.
The accounts also show that the six directors, which include BLP managing partner Neville Eisenberg received £282,000 in emoluments with the highest earning director taking home £144,000.
The company has eight permanent members of staff and staff costs consisted of £704,000 in wages and salaries.
Before the acquisition, LoD turned over £803,000 in May 2012, taking the full year figure to April 2012 to £8.7m.
In July 2013 the provider recruited former Financial Times general counsel Tim Bratton as practice development director, who started work at the group in September (9 July 2013).