They are quite possibly the best crowdfunders ever!
They keep losing money and then managing by the skin of their teeth to raise more
The UK Law Soc Jnl has the latest chapter
Slater and Gordon records £19.5m pandemic loss
later and Gordon plunged deep into the red at the height of the pandemic but the national firm’s directors have voiced confidence that the business has a future after securing new financing.
The firm recorded a pre-tax loss of £19.5m for the year ending 31 December 2020 following a profit of £12.5m the previous year as revenue fell by 8.5% to £111.1m and administrative expenses nearly doubled, from £31.1m to £54.3m, according to newly published directors’ report and financial statements.
The loss – attributed to a 74% decrease in the volume of road traffic during the first national lockdown – was recorded despite an increase in Slater and Gordon’s caseload, with unsettled cases up 11.8% on 2019 figures, and a 6.8% increase in new cases acquired.
The results are a blow for the national firm, which appeared to be recovering strongly with profits and cashflow improving last year after an ill-fated brush with the stock market.
Slater and Gordon said the consolidated group – whose ultimate parent entity, Slater and Gordon UK Holdings Limited, has yet to file its annual accounts with Companies House – ‘manages its financing via a shareholder loan facility which, including accrued interest, is £33.8m as at 31 December 2020 and is fully drawn down’. Shareholder loans due to expire in December 2021 have been extended to May 2024.
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