DWF expects its latest cost-cutting measures to achieve savings of £15 million by the end of the 2021 financial year, the firm announced on Thursday.

 According to its latest release, the firm is scrapping its flexible resourcing service known as 'DWF Resource', which is a part of the firm's Connected Services division. A person close to the matter said the three people working for DWF Resource were to leave the firm as part of the wider cull. 

As part of a firmwide cost-cutting drive, the firm earlier in July cut around 60 members of staff and axed its offices in Singapore and Brussels.

In the statement, the firm said it expects the discontinuation of these loss-making operations – which represented around.1.5% of the firm's revenues -  to "reduce the FY20 cost base by £15 million", and that it will reinvest around 50% of these savings back into its "key growth sectors".

According to the firm's website, DWF Resource was designed to provide "flexible resourcing" services, and "high quality legal support". It is a part of the firm's wider 'Connected Services' division, which was added to the firm's capabilities in 2017, through its acquisition of 215-strong claims manager Triton out of administration, and operates principally as the firm's smaller claims management arm.

The latest move is just the latest instalment in a series of events of the past few months that has seen the main market listed firm part ways with its former CEO Andrew Leaitherland, its share price tumbled to its lowest point (46p), and announce it was closing its offices in Singapore and Brussels, and trimming headcount by around 60.

However, in a bid to offer reassurance to the market, the firm highlights year-on-year revenue growth in the months of May and June of around 21% "reflecting the contribution from the acquisitions of RCD in Spain and Mindcrest".

Meanwhile, for the same period, the 'Connected' division has delivered revenues of "over 35%…aided by increasing internal referrals and continued growth of its external profile".

Earlier in July, people close to the matter had indicated that Connected Services was "subscale" and that DWF had struggled to integrate the division into the wider firm.  

In the statement, the firm said it is "cautiously optimistic about FY21 performance albeit it is too early to make any firm predictions given the pandemic is ongoing and the economic impact remains unpredictable".

The firm's CEO Sir Nigel Knowles said in the statement: "Despite the headwinds facing the global economy, I am pleased with the positive momentum that DWF has generated during the first two months of the year, with revenue and EBITDA ahead of prior year, and activity levels increasing.

"We have taken decisive action focused on consolidating our existing operations to increase profitability, deliver cost efficiencies and improve lock-up and cash generation. Measures to scale-up Managed Services and optimise the International division will position DWF well for FY21 and beyond. Having had the opportunity to talk personally with many stakeholders, including both internal and external shareholders, I am very pleased that our new direction has such strong support."

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