Law firm braces for further headwinds following a year of progress
Irwin Mitchell Group has issued its annual results for the full year ended 30 April 2023 (FY23) posting year-on-year revenue growth and a drop in pre-tax profits.
The group, which has an office in Birmingham, reported a core group revenue rise of 1.8% to £271.0m (FY22: £266.1m) driven by growth in Complex Personal Injury (PI) and Life Cycle Legal Services as well as in asset and wealth management business.
Core group profit before tax was £19.1m (FY22: £25.2m) which was an anticipated reduction given the level of planned investment in the group.
Group revenues (which include all core and other non-core areas of work such as Volume PI which is in run off) were £276.4m (FY22: £275.7m) along with pre-tax profits of £15m (FY22: £21.2m).
Glyn Barker, chairman, said: “Our full-year results for FY23 demonstrate another year of positive progress against our strategic objectives with new acquisitions announced and multiple lateral hires recruited.
“We’ve invested in new technology, achieved excellent client and colleague satisfaction scores, and robust underlying financial results.
“Global economic forecasts suggests that the coming financial year will be another challenging year as inflationary pressures, in combination with the high interest rate environment and general cost-of-living crisis will impact many consumers and businesses adversely.
“However, the quality of our people, combined with the breadth of services and ongoing investment, supported by the strength of our balance sheet, gives us the confidence that despite the considerable headwinds, we will deliver further strategic progress in FY24.”
The group notes that it has grown its core business. It says this confirms it made the right decision to leave the volume personal injury market and focus on more complex PI cases as well as growing its other legal and financial teams advising corporate and affluent clients.
Irwin Mitchell expects the exit of the Volume PI business to complete in FY24.
Also during the year, the group made 18 lateral partner hires and began to reorganise its property portfolio to meet client needs and colleague hybrid ways of working.
This includes broadening its office reach to 18 locations across the country with new offices in Cardiff and Liverpool as well as reviewing several property leases.