Irwin Mitchell: revenue dips following strategic withdrawal from volume personal injury market
The firm said the dip was 'expected'
Irwin Mitchell has published its financial year 2022 (FY22) results which revealed its overall group revenue “dipped slightly” following a strategic withdrawal from the volume personal injury market, which saw an end to the firm acting in relation to lower value fast track cases such as whiplash.
However, the firm said this was expected and that its core group revenue rose to £266.1m, up against £262.3m in financial year 2021 (FY21). Core group profit before tax was up on pre covid-19 levels to £25.2m (FY21: £39.9m, FY20: £8.9m).
Andrew Tucker, group chief executive officer, commented: “This was a transformational year for Irwin Mitchell as we implemented several changes designed to increase our operational resilience and agility, enhance our clients’ experiences and promote greater collaboration amongst our colleagues”.
Tucker acknowledged that FY21’s results had been “exceptional” due to significant savings made during the pandemic. He said: “Our results this year, while robust and significantly ahead of pre-pandemic levels, are set against last year’s exceptional performance which benefited from the wide range of one-off cost saving measures that helped to protect Group profitability and preserve cash during the pandemic.
“We’ve made a strong start to FY23, opening two new offices in Liverpool and Cardiff and announcing the acquisition of TWP Wealth (subject to FCA approval) to add further capability to our wealth management services.
“We’re mindful of the current macroeconomic and geo-political environment; however, we’re confident that our trusted reputation, leading approach to Responsible Business, differentiated business model and healthy balance sheet position us well for continued long-term, sustainable growth.”
The firm does not share a profit per equity partner (PEP) figure due to the corporate structure of its business, which it said works differently to traditional partnerships. It said its reported profit before tax is after all partners have been paid, so is not suitable for estimating a PEP figure.