Andrew Grech (pictured), the managing director of publicly listed Australian firm Slater & Gordon (S&G), has pledged to take full advantage of the UK's legal market reforms to make S&G's recently acquired UK arm the leading consumer law brand.

S&G signalled its intention to break into the UK legal market in January 2012, when it announced its acquisition of UK personal injury specialists Russell Jones & Walker (RJW) for £53.8m.

The deal, which was subsequently approved by the Solicitors Regulation Authority, realised the potential for the 2007 Legal Services Act (LSA) to shake up a legal market that Grech characterises as being in a state of paralysis ripe for consolidation.

Last month, RJW completed the final stage of the initial merger integration process when it began trading under its parent company's name. The rebranding coincided with the release of the group's half-year results, which for the first time included the performance of its UK arm. 

During the period, S&G grew by 46.5% to A$145.7m (£99.7m), with RJW's 10 UK offices generating almost a quarter of this total – A$34.3m (£23.5m). Net profit for the period was A$19.1m (£13.1m), 61% higher than the previous corresponding period.

The UK practice is currently on track to grow by 8%-10% with a revenue forecast of A$70m (£48m) for the full financial year. 

The growth rate may by healthy, but the firm's UK arm remains a quarter of the size of market rival Irwin Mitchell, which posted a revenue of £183.7m last year. 

"Through our acquisition of RJW, we have entered the UK with a substantial platform and with a talented team of people who understand the nuances of the local market," says Grech. "Our long-term goal is to grow the business and become the pre-eminent consumer law firm in the country.

"We are patient and have a long-term strategy. This won't take five minutes, five months or perhaps even five years. But we haven't entered the UK market to be a bit-part player – we intend to lead the consolidation, but we'll be patient about when we go about doing it."

The purchase of RJW by an overseas business was made possible by the regulatory changes contained in the LSA. Grech says the Act and the advent of alternative business structures will be key drivers of market consolidation. 

"We are strong advocates of opening up the market to competition. Those against the idea argue that the profession needs to be protected. We don't think that is a good enough argument given the needs of consumers of legal services. 

"The UK legal landscape is evolving, with so much regulatory change. I don't agree with every single change – some are unnecessary – but what these changes will do is accelerate the consolidation process to a point where we will be left with just a few large firms dominating the market for consumer legal services.

"I hope we won't be considered arrogant. We're not – there are some very good competitors out there but we have something new to bring to consumers and we have a terrific group of people at RJW to help us do that."

 The firm plans to focus its growth on the areas of personal injury litigation, employment law, crime and regulation, family law and class or group actions.

As part of the takeover deal, RJW's senior management team, led by chief executive Neil Kinsella, were locked in for at least three years. Kinsella remains chief executive of S&G's UK operations and has been entrusted with leading the firm's growth in the UK.

"Neil Kinsella and the team have been on this path for a long time," says Grech. "He just needed that investment and confidence to make things happen. In an uncertain market, innovative people often get shouted down. 

"There are so many good firms in the UK, but they seem to be going through a period of paralysis. We went through a similar time of uncertainty in Australia and having been through that process, we now have the experience and confidence to invest in the UK."

The catalyst for a spectacular period of growth for S&G in Australia was its stock market flotation in 2007. S&G was the first legal practice to float and it used the funds this unlocked to embark on an extended programme of acquisitions that saw it swallow up no fewer than 20 law firms. 

Turnover at the firm rose from A$62.9m (£43.2m) in 2006-07 to A$218m (£149.4m) in 2011-12. In the same period, headcount increased from 418 to 1,350, and offices from 26 to 69.

Grech acknowledges that it will not be possible for S&G to maintain such a high growth rate in future in the firm's home territory. 

"We've reached a stage where there aren't many opportunities left in Australia that would enable us to grow as quickly as we'd like. We led the consolidation drive here in consumer legal services, by growing organically and making a significant number of acquisitions. 

"Our personal injury litigation practice is still growing but at a lower rate, off a very high base. We expect to continue to experience double-digit organic growth in the rest of our Australian practice off a much smaller base. Having our growth path in Australia well established gave us the confidence to look further afield."

With the opportunities for further growth in Australia receding, the firm has turned its attention to another legal market that has embraced radical structural reform. And in the case of the UK, the prize for those that take full advantage of these changes promises to be a substantial one.

As Kinsella observes: "The reforms that are now happening in the UK – in a market that is four to five times larger than Australia – present an enormous opportunity, especially when we can bring to bear the experience of Slater & Gordon as a whole as we have seen it and done it before."

Slater & Gordon – revenue growth since 2007 IPO

2006-07 A$63m (£43.2m)
2007-08 A$80m (£54.8m)
2008-09 A$103m (£70.6m)
2009-10 A$125m (£85.7m)
2010-11 A$182m (£124.7m)
2011-12 A$218m (£149.4m)