ASX-listed law firm Integrated Legal Holdings has reported a net profit of A$0.71m for the first half of FY2010 – a marked improvement from the A$0.3m loss the firm recorded in the second half of FY2009. The firm’s revenue grew by 24% to A$11.6m.

Integrated Legal Holdings Managing Director Graeme Fowler told ALB the firm’s profit spike in the first half were the result of new acquisitions and organic growth in existing member firms. In the last 18 months, the firm has acquired the Sydney and Melbourne based Argyle Lawyers and Sydney tax specialist firm mda lawyers. “[These] acquisitions more than doubled our business,” Fowler said.

Fowler predicted the firm will achieve revenues of at least A$21m for the 2010 financial year. Fowler told ALB the firm would continue to look at potential acquisition targets, but would maintain a “selective and incremental approach”.

Fowler attributed the net loss in the previous half to impairment loss, especially from the write-off of excess goodwill for member firm Law Central, an internet based legal document service provider. “Our Perth businesses have also underperformed; it has fallen behind the rest of the country in recovering from the GFC,” Fowler said.

Fowler said that some member firms continue to experience bad debts from client bankruptcies and there was significant room for improvement in cash flow management.

Integrated Legal Holdings operates on a unique business model of acquiring high growth medium sized law firms. It then supports the growth of member firms within its national network through strategic assistance and tuck-in acquisitions. It is one of the only two publicly listed legal groups in the world.