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AFL reports over $18m in revenue for FY22
Australian Family Lawyers has released its results for the last financial year, reporting a “record” performance with more than $18.5 million in revenue.
Lauren Croft
In an announcement made to the ASX on Monday (29 August), AFL revealed a 67 per cent growth in revenue, increasing from $11 million in FY21 to $18.5 million in FY22.
In addition, AFL recorded over 11 per cent organic revenue growth with more than 62 per cent growth in file openings as well as signed a $10 million acquisition facility to support future acquisition growth. The firm also expanded to 18 offices with new office openings in Alice Springs and Wollongong combined with an office expansion in Canberra.
The news follows the release of the financial year 2022 results from Slater and Gordon, with a net profit decrease of 85 per cent; Shine Justice, which reported a 22 per cent net profit increase; Clyde & Co, which revealed their Australian offices are bringing in the most revenue; Ashurst, which saw a 12 per cent revenue increase; Clifford Chance, which saw equity partner profits rise by 10 per cent; Herbert Smith Freehills, which recorded close to $2 billion in revenue; Pinsent Masons, which saw a PEP increase of 16 per cent; IPH, which acquired a Canadian IP firm as it announced its end-of-year results; and PEXA, which settled more than $900 billion in the last financial year.
In August this year, AF Legal Group (ASX: AFL), which owns Australian Family Lawyers, launched a “first-of-its-kind” partnership model as part of its three-year growth plan, “AFL 3.0”.
The new partnership model, the firm said in a statement, is “unprecedented” and a “first of its kind” and aims to accelerate the firm’s growth and geographical reach and also solve a fast-growing problem in the legal sector.
This partnership model is a “first for the legal industry”, according to the firm, and means both lawyers and firms are able to partner with, and co-own, a legal practice with the incorporated entity.
The news followed the opening of the firm’s 19th national office, in the Gold Coast, as reported by Lawyers Weekly. Prior to that, the firm unveiled its 18th national office in Wollongong in June, as well as its expansion into the Northern Territory late last year.
In June of this year, the firm unveiled an 18-week paid parental leave policy. In September 2021, the firm spoke with Lawyers Weekly about its plans to be the biggest and best family law firm in Australia.
Commenting on the FY22 performance, AFL executive director Grant Dearlove said the firm would continue to focus on its growth strategy.
“AFL is a strongly defensive business with compounded annual revenue and underlying EBITDA growth at +55 per cent and +40 per cent respectively since IPO three years ago. With our current strategy focused on family law with an addressable market in excess of $1bn in that market alone, we feel confident that there is still very substantial growth ahead. We will also move into other areas of law which would increase our total addressable market to $7.5bn+. It is an exciting time for AFL and its stakeholders,” he said.
“The FY22 performance of the business was a significant improvement on FY21 despite well documented headwinds in the economy and significant operational investment in our platform to support future growth. With the platform now built, we are excited about the next three-year strategy we have released being ‘AFL 3.0’ and our new ‘owner operator’ model and what new growth channels that can provide. We continue to prepare the business for future growth and are well positioned to execute our long-term plans.”
Lauren Croft
Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
