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AF Legal Group ‘in the early stages of a significant turnaround’
Listed national firm AF Legal Group (ASX: AFL) is optimistic about its prospects, having delivered revenue growth of 15 per cent compared to the prior year, and three consecutive profitable half-years, as per its FY2023–24 financial results.
Jerome Doraisamy
Late last week, AF Legal Group published its results for the financial year ending 30 June 2024, which saw headline net profit after tax (NPAT) of $1.6 million, which was up from a loss of $7.6 million in the previous corresponding period.
NPAT attributable to the firm’s owners was up at $1 million, another high, boosted by record revenue of $21.9 million (up 15 per cent from last year), and a $6.1 million drop in expenses from the previous corresponding period.
The firm is, it declared in its investor presentation, to be “in the early stages of a significant turnaround”.
In the last 18 months, the presentation noted, normalised net profit before tax (NPBT) was up to $1.4 million for the owners over the last 18 months, representing a “significant lift” from the preceding two and a half years, which saw losses of $0.4 million.
The acquisition of Armstrong Contested Wills & Estates, as reported by Lawyers Weekly in March, which marked AF Legal’s expansion into a practice area complementary to family law, assisted in delivering revenue in the fourth quarter of FY23–24, by way of “additional revenue and scale, allowing us to better leverage our relatively fixed central cost base”.
Elsewhere, the listed firm completed a successful cap raise of $1.9 million in March and extended its finance facility with NAB – first reported back in mid-2022 – until early 2027.
AF Legal’s improved results, the investor summary concluded, “have been delivered off a solid foundation put in place across the first 12 months or so of the new management team”.
“It is pleasing to witness the transition of our organisation into one that is truly people-first and practice-led,” it said.
The news follows the listed firm’s promotion of 15 professionals to more senior roles in mid-July.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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