Co-op Legal Services: Big contribution to group profit
Co-op Legal Services (CLS) is the fastest-growing part of the wider Co-operative Group, with revenue up 35% in the first half of 2024, results published yesterday revealed.
The pioneering alternative business structure, the second licensed by the Solicitors Regulation Authority (SRA) back in 2012, reported revenue of £42m for the six months, compared to £31m last year, with profit increasing 56% from £9m to £14m.
Prices have not been increased this year and Co-op members are offered special deals on selected legal services.
Although, in terms of revenue, CLS is a tiny part of the group, which turned over £5.6bn in the period, the profits made a significant difference – the group’s underlying operating profit was up by £4m to £47m.
CLS describes itself as the largest regulated provider of wills in the UK and having the largest team of probate solicitors and specialists.
The largest of CLS’s practice areas, estate planning, saw case openings increase by 45% compared to the same period 2023 (17,546, up from 12,138), while probate case openings increased by 8% (5,098, up from 4,738) “despite a lower death rate as confirmed by ONS data”.
A review of the business said: “Accessible digital channels and the provision of personalised legal services at value for money prices have been the key drivers in attracting new clients and members.
“Significant progress to strengthen and grow the business during 2024 was made through successful partnerships with a variety of organisations, from financial services businesses to charities, which has enabled Co-op Legal Services to extend its reach and make its expert services accessible to more member-owners and clients.”
There has been investment in “automated production processes” for probate matters and “further investment in this technology will enable the business to significantly improve its core operations and achieve further scale”. CLS has also been begun taking on solicitor apprentices.
CLS is part of the group’s Life Services division, which also includes its funeral and insurance businesses. Managing director Caoilionn Hurley said: “The continued success of our legal services business is down to the energy and passion of our colleagues. They are the heart of our business and its success, while their commitment to our clients and member-owners enables us to provide them with the highest standards of expert legal service.
“Increased digitalisation and accessibility, expanding and strengthening our partnerships and delivering optimal customer journeys remain at the core of our strategy, and this has been fundamental to our growth so far in 2024.”
Speaking to Legal Futures in 2022, Ms Hurley said the aim was to become a £100m operation by 2027; it is looking ahead of schedule.
CLS has a customer satisfaction score of 83%, down slightly on last year, and an ‘excellent’ rating from Trustpilot.
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