Quality over quantity was the focus for Hull law firm Neil Hudgell Ltd as it delivered an increased profit on a lower turnover.
And the personal injury specialist has warned that a consequence of Covid-19 could be a reduction in cases, as fewer claims are brought.
The Humber Quays headquartered firm, which has branched out to London and Manchester, saw fees come in at £9.8 million, down nearly 11 per cent on 2019’s £11 million.
However, profit was up from £189,801 to £312,029 in the latest financial results.
In his strategic report, sole director Neil Hudgell said: “Neil Hudgell Ltd delivered a solid trading year with a focus on attracting better quality work through solicitor networks, and less through online agency spend. A continued rationalisation of overheads was achieved, with a reduction in costs across the board, leading to increased profitability despite a marginal drop in revenue.
“The business is in robust shape to face the trading challenges which continue to present in the personal injury market place, particularly from increased competition in the medical negligence field and the run off of more lucrative funding arrangements.
“New income streams in inquest and inquiry work were retained and improved alongside travel and abuse, to counter reduced volumes in personal injury caseloads and costs.”
He said that following the 2019 opening of the “prestigious St Peter’s Square, Manchester office” it has “performed well in the year, and continues to grow”.
Underlining the Top 200 UK law firm listing retention, Legal 500 praise and recognition from work on the Manchester Arena bombing and the Windrush and Post Office Horizon IT scandals, Mr Hudgell turned to coronavirus.
The former Hull KR chairman said: “The impact of Covid is likely to be felt a little later for the firm as less claims are being taken on during the pandemic, which may reduce the income in the future years, given the lifecycle of cases this could take 12 months to become apparent.”
Potential caseload acquisitions will be sought from those looking to exit the personal injury market, as it has done previously, he said.
A handful of support staff were furloughed during the pandemic, with the vast majority working from home. Staff numbers were down from 130 to 118.
Wilkin Chapman, the Humber’s largest law firm, has also recently filed “satisfactory” results, with turnover at £27.4 million - up 3.9 per cent from £26.3 million for the year to March 31, 2020 - the same period.
Profits were down 8.1 per cent from £9.2 million to £8.4 million. The Grimsby-headquartered firm anticipates future results of a similar nature. Staff numbers were up from 404 to 411.
