We are pleased to announce our unaudited results for the six months ended 31 October 2023 (the “Period” or “H1 24”).
Financial highlights
- Resilient financial performance with revenue and underlying profit before tax up 7.6% (H1 23: 22.2%) and 4.6% (H1 23: 9.6%) respectively, against a challenging macro-economic backdrop
- Group organic revenue growth of 5.1% (H1 23: 9.8%)
- Legal services revenue grew entirely organically by 2.4% (H1 23: 8.2%)
- Revenue from consultancy services represents 27.6% of total revenue at £22.6m (H1 23: £18.2m or 23.9%), of which organic growth was 13.5% (H1 23: 20.0%)
- Underlying profit margin decreased to 12.2% (H1 23: 12.6%) as a result of investment in future growth including a 3.5% increase in fee earners, improved technology and continued M&A
- Activity levels across the Group decreased with utilisation at 83% (H1 23: 86%)
- Strong balance sheet with net debt of £2.2m at the Period end (H1 23: net cash £1.1m)
- Proposed interim dividend maintained at 3.3p (H1 23: 3.3p) per share
| Headline and underlying | H1 25 | H1 24 | Change |
|---|---|---|---|
| Group revenue | £86.3m | £82.0m | 5.3% |
| Group underlying operating profit | £9.1m | £8.6m | 5.8% |
| Group underlying profit before tax1 | £10.6m | £10.0m | 5.9% |
| Underlying diluted EPS2 | 6.63p | 6.40p | 3.6% |
| Net assets | £80.8m | £83.3m | (3.0)% |
| Net cash/ (debt)3 | £1.2m | £(2.2)m | 154.5% |
| Dividend | 3.3p | 3.3p | - |
| Reported | H1 25 | H1 24 | Change |
|---|---|---|---|
| Group profit before tax | £3.3m | £7.4m | (54.8)% |
| Group profit after tax | £1.9m | £6.1m | (68.7)% |
| Basic earnings per share (“EPS”) | 1.44p | 4.83p | (70.2)% |
1 Underlying operating profit and underlying profit before tax excludes remuneration for post-combination services, gain on bargain purchase, share-based payment charges, acquisition related amortisation and exceptional items
2 Underlying diluted EPS excludes remuneration for post-combination services, gain on bargain purchase, share-based payment charges, acquisition related amortisation and exceptional items. It also adjusts for the future weighted average number of expected unissued shares from granted but unexercised share options in issue based on a share price at the end of the financial year
3 Net cash/(debt) excludes IFRS 16 lease liabilities
Strategic and post-Period highlights
- Prior year acquisition of Richard Julian and Associates Limited (“RJA”) has been integrated and is performing well-ahead of initial expectations
- Ongoing investment in capacity with an increase in average fee earner headcount of 4.4% to 1,081 in H1 25 (H1 24: 1,035)
- Continuation of strategic hiring with 10 new legal services partners joining during H1 25
- Continued focus on alignment of stakeholders including through 70% of staff either owning shares or currently participating in the Group’s key Restricted Share Awards Plan and Save As You Earn scheme
- Achieved all 15 responsible business objectives set out in our 2023/24 Responsible Business Report and launched 15 new objectives in our fourth annual Responsible Business Report published on 6 August 2024
Current trading and outlook
- H1 25 outturn demonstrates the resilience derived from our ongoing investment in a diverse range of professional services
- Activity levels increased throughout H1 25, particularly in transactional services in Q2
- Recent organic investments are beginning to generate positive returns alongside strong performances from our most recent acquisitions
- Promising M&A pipeline entering H2
- Our strong H1 performance leaves the Group well placed for H2. The board expects results for the full year to be in line with market consensus