Personal injury specialist Slater & Gordon has posted a loss of £6.93m for the 2014/15 financial year according to its UK LLP accounts, 75 per cent higher than its previous £3.95m loss.
Although, the firm made a loss during the last financial year after a number of acquisitions turnover increased by 37 per cent, from £90.4m to £123.9m.
Slater & Gordon’s UK arm has grown rapidly over the last two years due to its aggressive acquisition strategy. During the last financial year the firm acquired the personal injury arm of East Midland firm Flint Bishop, Cardiff-based Leo Abse & Cohen, and Chester-based Walker Smith Way.
The firm’s operating expenses also grew by 38 per cent from £75.7m to £104.7m.
The LLP also received a loan of £48.5m from Slater & Gordon UK Ltd, which holds a position as a corporate member. The total owed to Slater & Gordon UK Ltd now stands at £157m.
Slater & Gordon’s LLP is part of the larger parent company, which is listed on the Australian Securities Exchange (ASX). In February, the group revealed it had made a loss of A$958.3m (£493m) during the first six months of the 2015/16 financial year. The loss was mainly attributed to the £700m acquisition of insurance outsourcer Quindell’s professional services arm.
Following the results the group agreed to present an operating plan and restructuring proposal to its syndicate of lenders. The details of the plan have yet to be revealed although if the lenders’ requirements are not met Slater & Gordon could be forced to repay its A$789.3m borrowings by March 2017.
According to the latest UK accounts the firm’s borrowing now stands at £307.7m.