Preston headquartered law firm Napthens is continuing on its growth trajectory after once again reporting record turnover – however a ‘cyber-event’ saw its pre-tax profits fall.
The firm has released its figures for the financial year to March 31, 2024. They show a rise of 5.4 per cent in group turnover, up from £19.5m to £21.4m.
Pre-tax profits dipped from £5.1m to £4.5m. The firm says this was primarily because of a specific event which affected many law firms across the UK - the impact of an IT outage at a third-party contractor which suffered a cyber-event in December 2023.
It says this is something the firm has already addressed to mitigate against future such issues.
The business has 25 partners and employs almost 300 staff at offices in Blackburn, Kendal, Liverpool, Lytham and Southport.
This year will see Napthens transition to a new leadership framework, with current financial director, Stephen Faulkner, moving to managing director.
Stephen, pictured, said: “The figures for the previous financial year reflect the resilience of our people in light of the unprecedented challenges the business faced during that period.
“The response of the teams and our recovery clearly demonstrates our success as one of the most innovative and fastest-growing law firms across the north west.
“While profits have dropped slightly, we faced significant problems during the final few months of the financial year as a result of the outage, which is the only reason our profits were impacted.
“Mitigating against issues from third party suppliers continues to be a key focus for the firm, to reduce the impact from outside influences.
“Our long-term growth plan to reach £25m annual turnover by 2025 is firmly on track, and we have continued to make significant investment in our people, our infrastructure, our support systems, recruitment and strategic projects, to facilitate this.
He added: “The current financial year is on track to be one of our most successful ever with more exciting plans to deliver to continue our growth journey.
“As a firm we are investing for the long-term and this is something we know will bear dividends; indeed, it is happening as we begin 2025.”
Lancashire Business View reported in December last year that Stephen was taking on his new role.
READ: Stephen Faulkner appointed managing director of Preston-based north west law firm Napthens
Previously head of finance at the firm, Stephen has a strong record of leadership and technical expertise in the legal and business finance sectors, demonstrating strategic vision, a commitment to client success and driving excellence across teams.
Once appointed to his new role from 1st April 2025, he will be charged with expanding the service offerings of Napthens, fostering strategic partnerships, enhancing operational efficiency and strengthening the firm’s market position.
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