ASX-listed law firm group Slater & Gordon have reported a 19.4 percent increase in revenue, but a 10.5 percent drop in net profit.

The Vioxx class action, which lost on appeal, was the main contributing factor in the group’s profit drop, accounting for $10.5 million.

The group’s recently acquired UK subsidiary Russell Jones & Walker performed in line with expectations, contributing A$12 million to the revenue result in the two months since the acquisition was completed. Revenue for the Australian business was A$205 million. Total revenue for the group was A$218 million.

The Australian personal injuries practice delivered an organic growth rate in fees of eight percent. The commercial and project litigation practice performed in line with expectations following the settlement of the Centro case which was worth A$200 million.

The conveyancing model obtained by the group through the acquisition of Conveyancing Works in the first half of the year is set to be rolled out nationally as part of the group’s strategy to leverage its brand strength and national office network.

Managing director Andrew Grech said that the acquisition of Russell Jones & Walker provided Slater & Gordon with a future growth platform in a market four to five times bigger than Australia. “The potential to exploit the Slater & Gordon brand in markets outside personal injuries is still largely untapped,” he said.