FIXED-fee employment law specialist Law at Work, which spun out of Maclay Murray and Spens five years ago, has revealed a nine per cent increase in turnover and nine per cent decrease in pre-tax profits for the year to the end of May.
The business, which advises on employment law as well as human resources and health and safety matters, said that its revenues for the year came in at £2.5 million, up from £2.3m the previous year.
Earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, fell to £370,000.
According to chairman Magnus Swanson, both the rise in the top line and fall in the bottom line are down to the firm’s September 2016 acquisition of HR consultancy Square Circle HR.
“The one-off professional fees and integration costs associated with the substantial acquisition are reflected in a nine per cent decrease in year-on-year EBITDA,” Mr Swanson said.
He added that the business is expecting to post double-digit revenue growth in the current financial year.
“We are very pleased that 2017/18 has got off to a flying start with the full impact of the combined businesses being realised,” he said.
“We have also noticed greater confidence amongst our clients in committing to new contracts and the amount of tribunal activity has also sharply grown.”
While there had been a drop-off in employment tribunal work after the UK Government introduced fees for taking such cases four years ago, a Supreme Court decision earlier this year ruled that the fees were unlawful.
The Government has since begun refunding fees to anyone who paid to bring a tribunal case in the intervening period.
Mr Swanson, who was chief executive of Maclays between 2003 and 2011, led the management buyout of Law at Work in 2012.
Maclays was taken over by international law firm Dentons at the beginning of this month.
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