A listed accident management group has revealed plans to create three more alternative business structures.
Redde PLC told the London Stock Exchange that a trio of partnerships with insurers and other related brands is ‘in the pipeline’.
The group has also revealed it has £25m cash earmarked for acquisitions to expand its operation.
The company, which bought Cardiff firm NewLaw in February 2014 under its previous name Helphire, said the acquisition has made an ‘encouraging start’ and given the board confidence to invest further in the legal sector.
Together with another legal services business, Principia Law, which has started up to provide credit hire recoveries, the group has now taken on 13,000 new personal injury cases and has 24,000 cases in progress.
The figures formed part of interim results for the six months ending 31 December 2014.
Although figures are not given for the individual contribution of NewLaw to group profits, the acquisition appears to have provided an immediate boost to financial health.
Turnover was £122m – an increase of 32% on the same period in 2013, while profit before tax rose by 172% to £11.5m.
NewLaw, based in Cardiff and Bristol, was one of the first existing law firms to take advantage of the new era of ABSs and is almost two years into a five-year partnership with motor insurer Ageas UK for customers making a personal injury claim.
The Redde group, through its acquisition of NewLaw, has a £4.95m overdraft facility with Santander UK.
The company paid an initial £24.5m in cash for NewLaw and pledged to issue shares based on performance. The first tranche of deferred payments came in August with around £5m-worth of shares issued.
The Redde announcement was reflected in its share price, which rose 7.2% within an hour of the market opening to 100.75p per share.
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