Class action and personal injury law firm Slater & Gordon (ASX: SGH) has delivered around $950 million to its clients during FY20.
Slater & Gordon delivered $700 million in personal injury compensation to clients and $250 million in class action settlements on behalf of more than 55,000 Australians by the end of June 2020.
This busy year led to the firm reporting $28.1 million in earnings for FY20, compared to $17.5 last year.
Revenue on this basis increased by 12 per cent and costs rose by 6 per cent.
But transformation costs weighed on the company, resulting in a full year loss after tax of $1.2 million.
This compares to a NPAT in FY19 of $31.3 million, which was positively impacted by the requirement to recognise a deferred tax asset of $31.5 million.
However, this year's result is still a very far cry away from the firm's position in FY17 when the company was tracking to hit losses of more than $1 billion.
Total revenue and other income from continuing operations was $178.3 million, compared to $160.4 million in the prior corresponding period.
While COVID-19 did not have a material impact on the firm in FY20, Slater & Gordon says the continued impact of the pandemic, particularly the continued imposition of government restrictions and the broader impacts on the Australian economy could be bad news in FY21.
"The Company would not be making this progress without the passion and dedication of our people to our client. In particular I would like to thank our people for their incredible efforts during the disruption caused by the COVID-19 pandemic," says Slater & Gordon chair James MacKenzie.
"The company has a strengthened balance sheet and is seeing positive organic growth.
"Most importantly we are united in our purpose to deliver affordable, high quality legal services to the thousands of everyday Australians who need our help to access justice."
Shares in SGH are up 5.93 per cent to $1.25 per share at 11:27am AEST.
Business News Australia