Co-op Legal recently announced a dramatic 63% drop in profits for the first half of 2012 after splashing out £700,000 on recruitment and expansion.
CLS said the decrease in profit is ‘in line with expectation and reflects investment for future growth’. At the same time the group revealed it had recorded legal sales of £17.1m, up 18.9% on the same period in 2011.
Fareeda Jaleel, founder of FRJ Business and Marketing Solutions, said: ‘Results like this are yet another example of supermarket and other big retailers making their move into the ABS market.
‘While this may seem like a troubling prospect for law firms, they should not be too daunted. There is money to be made out of this model and, so long as firms keep a close eye on their figures and understand the key tenets of their business they can be sure of a successful future.’