Pre-tax profits at Merseyside law firm Fletchers Group quadruple amid a surge in personal injury cases with revenues projected to hit £100m this year. Tony McDonough reports
A big rise in personal injury revenues has helped Merseyside law firm Fletchers quadruple its pre-tax profits and it is now on track to hit £100m revenues in its current fiscal year.
In the 12 months to April 30, Southport-based Fletchers generated revenues of £58m, 36% up the previous year. Pre-tax profits totalled £8.26m, around four times higher than last year. With new acquisitions Fletchers is expecting revenues of £100m this year.
With other offices in Liverpool, Manchester Leeds, Bolton and Cambridge. Fletchers Group is a UK market leader in clinical negligence and personal injury. It was founded in 1987 and in 2021 was acquired by an affiliate of private equity outfit Sun European Partners in 2021.
In June the firm agreed a new re-financing deal which will equip the business for the next stage of growth. However it declined to reveal the value of the agreement. Fletchers has already set out an aggressive acquisition strategy.
Highlights of the financial year include, personal injury revenues up by 14% and case signings up 87%, a 22% per cent increase in clinical negligence revenues, from case numbers and higher value claims.
Two acquisitions included Emsleys and Serious Injury Law (SIL). SIL’s contribution won’t appear in the accounts until next year. The next deal is due to be announced imminently.
Chief financial officer Alex Lynch said: “These results demonstrate the impressive growth and revenue opportunities that are available to firms who can invest in consolidation like Fletchers.
“Our approach of driving organic growth through our own marketing and recruitment, while also investing in dedicated teams to warmly welcome new colleagues that come to us through acquisition, has helped ensure we make the most of our acquisitions.
“Most importantly, we have been able to retain those people and ensure our existing business also benefits from the capabilities and relationships they bring with them.
“In recent years the sector has been underweight in respect of private capital, but I believe injury law is ripe for further consolidation, and as our results indicate, there are attractive returns for investors looking to participate in the consolidation.
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“We expect to make another acquisition shortly and our pipeline is as strong as ever. Many firms are looking to M&A to secure their long-term future, and their current owners want to find a good home for their current staff.”
Alex added that AI is a particular opportunity for a business such as Fletchers, where a large caseload – current and historic – can deliver real insights.
She said that Fletchers has recruited a data science team of 10 people (including five PHDs) following an annual investment of £1m, and pilot projects are underway in specific tasks such as bills of costs and the pagination of medical reports.