This week, personal injury providers, Lyons Davidson, have reported financial losses of £3 million. Lyons Davidson revealed post-tax figures for the year ending 31 May 2017. The firm admitted that losses were due to ‘a year of consolidation and restricting’.[i]
Last year, its profits fell from £4.06 million to £1.1 million, while its turnover fell from £44.47 million to £41.9 million.
Mark Savill, Managing Director of Lyons Davidson, said that the decline in profit had been expected because of the challenges posed by impending reform to the personal injury sector. In 2017/18, the firm closed its smaller offices as a means to restructure the business, but retained seven offices and increased its staff numbers. Digital services investment may have also affected the firm’s profit and turnover.
Mr Savill has assured that, despite financial losses, Lyons Davidson has ‘maintained a strong market position’.[ii]
The firm also attempted to expand through ‘joint business ventures’ with insurers LV= and AA, in anticipation of a changing personal injury market. However, these were both ‘short-lived’, as have many attempted legal ABS creations over the past 5 years.
[i] John Hyde ‘National firm upbeat despite accounts revealing £3m annual loss’ (24 April 2018 Law Gazette) <https://www.lawgazette.co.uk/practice/national-firm-upbeat-despite-accounts-revealing-3m-annual-loss/5065808.article> accessed 24 April 2018.