A Bristol firm has said it is on course to end a period of losses as it ends the post-Covid recovery period. In results posted for calendar 2023, Lyons Davidson reported pre-tax losses of £1.2m, despite turnover rising by 13% to £26m.
Managing director Mark Savill said the losses, which were half those posted in 2022, were a hangover from the loss of work suffered during the pandemic – but that the recovery is in sight.
‘While we were able to proactively manage the business during the pandemic, the reduced instructions at that time continued to be felt from then and in to FY23 where we felt the impact of the loss of revenue we would otherwise have earnt,’ said Savill. ‘The growth in the business continues, and is on track to deliver an EBITDA profit for this financial year.’
The firm, which had a headcount of 564 by the end of last year, operates from four offices in England and Wales. Savill said the business aims to reduce its property costs in the coming months, after long-term leases had previously prevented the firm from being as flexible as it wanted.
Two of these leases expire at the end of the year and Savill said other options are being pursued which should bring ‘significant savings’ and increase the strength of the business.
Court settlements have increased in the past year, as have settlements negotiated by the firm’s injury teams. While the business is still heavily involved in the motor injury sector, 42% of turnover this year is set to come from the home and commercial sectors.
Lyons Davidson also continues to pursue compensation for the losses suffered as a result of the loss of business during the pandemic, following a successful claim under its business interruption insurance in 2021. The annual report states that the firm has been advised there is a ‘strong claim’ relating to restrictions imposed in trhe second wave of the pandemic and that this is being actively pursued.
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