Admiral Law has posted a £2.8m profit in its first seven months of existence.
The alternative business structure (ABS), run by Admiral Insurance and Lyons Davidson Solicitors, has released accounts showing that it made a turnover of £6.1m in its first seven months of trading, and a post-tax profit of nearly £2.2m.
Legal Futures has reported that Admiral Law’s directors were “satisfied” with its results to date.
Admiral also owns 90% of a separate ABS, BDE Limited, with Cardiff-based firm Cordner Lewis, which handles claims from the group’s other brands, including Elephant. Its accounts showed that it had made £273,000 in profits on £1.5m turnover in the first seven months of trading.
Admiral Law’s accounts noted that with legal fees being its only source of income, “legal or regulatory developments to reduce legal fees and/or the volume of personal injury claims will directly impact caseloads and income”.
The Group’s most recent annual results said the personal injury referral fee ban reduced its revenue per vehicle by £4 – meaning £12m in total. However, the report said that Admiral expected the reduction in revenue to be offset by reductions in claims costs.