AF Legal’s Growth Hinges on Project Titan Delivery Amid Regulator Probe Uncertainty

Strong Financial Momentum

AF Legal Group Limited has delivered an impressive half-year financial result for the six months ending 31 December 2025. The company reported a 40% surge in revenue to $17.8 million, setting a new half-year record. Profit after tax attributable to owners rose sharply by 75% to $0.493 million, reflecting the benefits of recent acquisitions and operational improvements.

Normalised net profit before tax attributable to owners reached $1.263 million, marking the highest half-year result in the company’s history. This continued profitable growth builds on the momentum established since mid-2023, underscoring the effectiveness of AF Legal’s growth strategy.

Operational Highlights and Strategic Investments

The company’s growth was broad-based across its core legal divisions. Family Law revenue increased by 31% compared to the prior corresponding period, while Contested Wills & Estates and Criminal Law divisions also posted strong gains. The acquisition of Armstrong Legal in late 2024 contributed to the revenue uplift, with integration efforts progressing well.

AF Legal continues to invest in Project Titan, a major IT transformation initiative replacing multiple legacy systems with a modern cloud-based platform. Project Titan remains on budget and on track for delivery in the current financial year, promising enhanced efficiency and access to AI-enabled tools that will benefit both legal teams and clients.

People and Culture Driving Growth

The Group’s people-first culture is proving a competitive advantage, with a 32% increase in the legal team size over the past year and a strong employee satisfaction score of 85% in the latest Great Place to Work survey. The addition of several Family Law Accredited Specialists and ongoing recruitment efforts signal a commitment to quality and expertise.

Marketing and client onboarding improvements have also contributed to growth, with digital-driven family law brands increasing file openings by 23% year-on-year and enhanced telephony and intake processes doubling phone conversion rates. These initiatives are expected to add approximately $0.8 million in incremental revenue by year-end.

Balance Sheet and Cash Flow Strength

AF Legal’s balance sheet strengthened during the half, with net assets rising to $10.6 million and borrowings reduced by $0.4 million. Operating cash flow remained robust, generating a $2.4 million inflow, supporting ongoing investments and dividend payments. The company declared and paid $850,000 in dividends during the period, reflecting confidence in its financial position.

While the company continues to manage legal defence fees related to an ongoing industry regulator investigation, no significant liabilities are currently expected. The Group remains compliant with its banking covenants and well-positioned to pursue its long-term growth ambitions.

Looking Ahead

AF Legal Group’s board remains focused on achieving its aspirational target of $50 million in revenue and a $5 million profit attributable to shareholders. The company plans to balance organic growth with targeted acquisitions, leveraging its strong culture, operational enhancements, and technology investments to maintain momentum through the remainder of FY26.