Linder Myers navigating out of financial mire

MANCHESTER law firm Linder Myers turnover hit £9.1m in just seven months trading last year, as it undertook a refinancing package to cope with “severe cash flow difficulties”.

Profits for the same seven month period to June 30 2014 were £1.2m. This compares to £11.5m of turnover and £5.1m loss for a full 12 months to November 2013, according to recently filed accounts.

Chief executive Tony Stockdale told TheBusinessDesk: “Our results for the seven months are exceptional in a period during which the business encountered major difficulties.

“We have just finished our first full year of trading since our reorganisation. 

“Both profits and cash generation have exceeded expectations and Linder Myers is now very well positioned to deliver its strategy of becoming a powerful regional practice.”

As part of its restructuring process, the company negotiated debt forgiveness with its secondary lenders amounting to £2.286m with overall restructuring costs incurred of £1.825m.

“Following these changes between March and June 2014, the firm scaled back its operating and cost base reducing the headcount of both its members and employees and improved working capital to a profitable, cash positive position,” the law firm said in its accounts.

“Despite the pressures caused by the cash flow difficulties the underlying performance of the firm in the period to June 2014 was satisfactory.

“Since that time, good progress has continued to be made and the firm has materially improved in all areas as well as achieving strong cash flow by improving working capital control.”