UK-based law firm Lyons Davidson has reported a 14.7% year-on-year decline in turnover to £30.8m in FY20.
The group also saw operating losses widen to £3.5m in the year ended 30 November 2020, up from losses of £2m the previous year.
Gross profit margin at Lyons Davidson declined from 51% in FY19 to 47% the following year, while the current ratio excluding intercompany loans climbed from 1.5 to 1.8.
Covid-19 disruptions caused initial challenges to the group, with the injury teams experiencing a fall in referrals to 28% of normal volumes at the beginning of the pandemic.
However, Lyons Davidson revealed that “some areas” of the business’ service lines, including employment, family, property disputes and its legal helpline, are now “experiencing activity above pre-Covid levels”.
Looking ahead, the group expects its civil and injury divisions to grow to total a third of the business each by FY23, providing the company with “a much more balanced business base with a wide range of services”.
In a filing on Companies House, the group added: “Overall the business is recovering well from the pandemic and the directors remain optimistic about the future results”.