Hudgell Solicitors reports double-digit profit growth and soaring turnover after move to employee ownership
One of the UK’s largest employee-owned law firms has reported a significant boost in profits and turnover in its first full year under the new ownership structure.
Hudgell Solicitors, which transferred ownership to an employee ownership trust in December 2023, has published accounts for the year ending March 2025 showing strong financial performance across the business.
Pre-tax profit rose by 10% to £5.6 million, while turnover increased by 46% to £21.1 million. The firm said the figures reflected both its first complete year as an employee-owned business and its involvement in several high-profile group action cases.
Founder Neil Hudgell, who remained a director following the sale, said the employee ownership model had played a key role in driving performance. He pointed to major litigation, including work on the Post Office scandal and representation of victims of the Manchester Arena terrorist attack, as contributing factors.
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He said the firm continued to operate with a clear strategic focus on its chosen practice areas, guided by what he described as a shared purpose of addressing injustice and supporting vulnerable clients. According to Hudgell, the firm’s brand strength improved during the year, with increases in organic website traffic, client enquiries and conversion rates.
The accounts show that cash reserves rose from £1.3 million to £4.8 million, while net assets increased by 34% to £3.5 million. The highest-paid director received remuneration of £2.2 million during the year.
The figures also disclose details of the employee ownership transaction for the first time. When 98% of the firm’s share capital was sold to the employee ownership trust, the deal was valued at £14.1 million. Of this, £5.6 million was paid in cash, with the remaining balance settled through loan notes.
During the year, the firm also expanded through acquisition. In July 2025, Hudgell Solicitors acquired the clinical negligence team and caseload of Newcastle firm Freemans Solicitors. The transaction involved an initial payment of approximately £326,000, with further sums payable depending on the success of the transferred cases. The firm said the move formed part of its strategy to grow its presence and workforce in the north east.
Founded in 1997, Hudgell Solicitors now operates from offices in Hull, Manchester and Newcastle. Neil Hudgell is also a prominent figure in Hull, having chaired rugby league club Hull KR for more than 25 years. Earlier this year, the club won the Challenge Cup for the first time since 1980.