How AF Legal’s Acquisitions and IT Overhaul Sparked 27% Revenue Growth in FY25

Strong Revenue Growth Fueled by Strategic Acquisitions

AF Legal Group Ltd has delivered its highest ever revenue in the financial year ended 30 June 2025, reaching $27.6 million, a 27% increase over the prior year. This growth was largely driven by the acquisitions of Armstrong Legal’s Criminal & Family Law practices, completed in October 2024, building on the previous year’s acquisition of Armstrong Contested Wills & Estates. These deals have expanded AF Legal’s service offerings and client base, positioning the company as a leading personal legal services provider in Australia.

Profitability Impacted by One-Off Costs but Underlying Earnings Improve

While statutory profit after tax fell by 55% to $0.7 million, the company reported a normalised net profit before tax attributable to owners of $1.4 million, up 77% from FY24. The statutory results were weighed down by $1.5 million in one-off expenses, including $1.1 million in legal defence fees related to ongoing regulatory investigations, $0.27 million in costs for the Project Titan IT system implementation, and acquisition-related expenses. Management anticipates further Project Titan costs of approximately $1.2 million in FY26 as the new practice and document management systems go live, aiming to deliver operational efficiencies and margin expansion in the longer term.

Geographic and Service Expansion Supports Growth Momentum

Following the acquisition of Armstrong Legal’s NSW-based criminal division, AF Legal has strategically recruited legal leaders in Victoria, Queensland, and the Australian Capital Territory to broaden its footprint. The contested wills and estates division also experienced a 14% revenue increase in its first comparable quarter post-acquisition. Rather than opening new offices, the company has opted for serviced office presences in Geelong and Cockburn, focusing on organic growth through team expansion in existing locations. This approach reflects a consolidation phase with a clear eye on profitable scaling.

Employee Engagement and Client Satisfaction on the Rise

AF Legal’s internal culture is showing marked improvement, with the latest Great Place to Work survey revealing an 84% employee approval rating, up from 53% in mid-2023. This aligns with the company’s people-first, practice-led philosophy. Client engagement metrics also improved, with leads increasing 46% year-on-year and cost per lead decreasing by 23%. The firm reached nearly 26,000 prospective clients in FY25, supported by enhanced SEO capabilities and the Armstrong Legal website integration. Over 822 five-star Google reviews and strong Net Promoter Scores underscore the company’s reputation for quality service.

Balance Sheet and Governance Remain Solid Amid Investments

The balance sheet reflects increased borrowings of $6.5 million, up from $3.6 million, to fund acquisitions and IT projects, with net assets stable at $9.8 million. The company complied with all debt covenants and maintains a strong capital base. Corporate governance remains a priority, with a diverse board and a commitment to gender diversity targets. Dividends were paid to shareholders of a controlled entity, Withnall Cavanagh & Co Pty Ltd, reflecting ongoing shareholder returns despite the investment phase.