Latest financial statement details profitable year for the expanding firm
Co-operative legal services (CLS) has seen its turnover rise by 11% in the first half of 2022, according to its latest reported figures.
CLS’s turnover has risen to £22m as it sees its alternative business structure go from strength to strength and sets its sights on further growth in the coming years.
The growth is mainly attributed to the firm’s 23% rise in probate cases and seeing profits rise to £4m.
CLS also gained regulated status by the Financial Conduct Authority (FCA) for its funeral services.
Due to CLS’s growth, more than 100 new colleagues joined its legal services team to handle the increased workload.
The growth is despite increasing costs, with energy and wage inflation increasing by £50m in the first quarter of 2022 compared to the same period in 2021.
Overall net debt has also reduced by £189m to put CLS in a strong picture moving forward.
Shirine Khoury-Haq, Chief Executive of the Co-op, said:
“Against a highly challenging economic backdrop, we have made significant progress in strengthening our balance sheet, whilst continuing to support the needs of our colleagues, members, customers and the communities in which we operate. Our clear focus on developing our businesses, whilst controlling costs, improving our cash-position and reducing debt is paying dividends.
Looking ahead, while we are mindful of the continued economic challenges, we have great confidence in the underlying strength of the Co-op and all our businesses. Having faced into some tough decisions in the first half, focused on cutting costs and improving efficiency, we ended the period stronger both operationally and financially.
Since then, we have progressed further with the planned sale of our non-core petrol forecourts business. This will strengthen us more and provide the means to invest in our core businesses, whilst enabling us to support our members, customers, colleagues and communities through the cost-of-living crisis.
I’d like to thank every single one of our colleagues for their leadership in delivering our results and vision this year.”
Allan Leighton, Chair of the Co-op, said:
“The first six months of the year have been a time of challenge for us – as they have been for all businesses. I was delighted that we were able to confirm Shirine Khoury-Haq as our permanent CEO during this period. Her energy to move decisively on improving our financial position, focusing on core business development, whilst still delivering on our vision commitments, is helping us move forwards with pace and purpose.
We know that the current testing conditions will not ease in the second half, and we will continue to face into the challenges, by remaining focused and by building upon our incredible co-operative heritage. I would like to thank all our colleagues for their hard work and dedication in these extraordinary times.”