Home' Slater and Gordon Annual Report : Slater and Gordon AR 2016 Contents Slater and Gordon Lawyers
Australia (SGL Australia)
Overview of Operations
SGL Australia is a market-leading
provider of consumer legal services
enjoying approximately 25% market
share in the Personal Injury Law (PIL)
market and a growing share in key
areas of the General Law (GL) market.
SGL Australia employs 1,330 staff
across 61 locations.
The PIL business provides legal services
to people in a range of areas including
motor vehicle accidents, workers
compensation and civil liability law.
The PIL practice contributed 77%
of SGL Australia’s FY16 fee and
The GL business is made up of Personal
Legal Services (PLS) and Business and
Specialised Litigation Services (B&SLS)
practice areas. PLS comprises family and
relationship law, conveyancing, wills,
estate planning and probate practices.
Work is predominantly performed
on a fixed fee basis. B&SLS comprises
commercial, estate, employment and
professional negligence litigation, class
or group actions and criminal defence
work. The GL practice contributed
23% of SGL Australia’s FY16 fee and
The Australian consumer legal services
market is highly regulated, with
regulations varying state by state.
SGL Australia has used its scale and
strong brand awareness to deliver
stable revenues and earnings by
successfully responding to legislative
change as and when it arises.
Strategic priorities for SGL Australia
are protecting and improving operating
leverage in PIL and significantly
growing market share and achieving
scale in selected areas of GL.
FY16 Performance Review
• Total fee and services revenue growth
of 8.1% was an encouraging result
comprising growth in PIL and GL.
• PIL growth was driven by strong
performances in Victoria, South
Australia and Western Australia.
Performance in New South Wales was
stable while Queensland continued
to adjust to the impact of workers
compensation legislative change.
• The GL business delivered 13.4%
growth in fee and services revenue
in FY16 due to growth in the B&SLS
and family law practices. The
conveyancing practice continued
to perform below expectations
and a strategic review will be
• Despite the strong operating revenue
performance, total SGL Australia
revenue declined in FY16 due to a
$27.8 million adverse movement
in the value of WIP.
• The net loss before tax and interest
includes $55.8 million of goodwill
impairment, a $27.8 million adverse
movement in WIP and $22.1 million of
non-recurring restructuring costs and
• Normalised EBITDAW declined due to
underperformance in some PIL practice
groups, a deteriorating performance
in conveyancing and an increase in
the cost base associated with labour
costs, IT costs, audit fees, legal fees
and other corporate expenses.
Slater and Gordon UK
The Slater and Gordon Group
entered the UK market in 2012 and
has established a circa £300 million
turnover integrated legal and allied
services business with a leading position
in each of the markets it serves, built
on service excellence and innovation,
strategic partnerships and growing
The Group operates in the UK as Slater
and Gordon Lawyers (SGL UK) and
Slater Gordon Solutions
(SGS) employing 3,310 staff across
25 locations. SGS is comprised of the
claims, motor and health businesses.
In February 2016 the Group announced
a major UK business reorganisation,
which is focused on establishing centres
of excellence in serious and specialist
personal injury, fast track personal
injury and general law services as well
as rationalising the provision of shared
services across the UK.
Overview of Operations
As part of the UK business
reorganisation, SGL UK has been
restructured to focus on delivering
personal injury services in serious and
specialist personal injury law claims
as well as targeted areas of general law.
The SGL UK Serious and Specialist
Practice (SSP) provides legal services
to clients in a range of personal injury
law practice areas including motor
vehicle accidents and employers
liability, as well as in specialist
areas such as industrial disease,
clinical negligence, abuse and travel
claims. The practice also provides
specialist services to member services
organisations. The SSP contributed
76% of SGL UK’s FY16 fee and
The SGL UK General Law (GL) business
is organised into three practice areas:
personal legal services – providing
services such as employment, family
law, residential property and crime;
business law services – providing
services such as commercial real estate,
regulatory, business advisory and
dispute resolution; and group litigation.
SGL UK has the largest family and
claimant employment law practices
in the UK.
The strategic priorities of SGL UK are
building market share and improving
operating leverage in SSP and growing
market share and scale in selected
areas of GL.
Slater and Gordon Limited 17
Annual Report 2016
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