Australian Family Lawyers (listed on the ASX as AF Legal Group Limited ASX:AFL) has had a winning first half in FY2021. It has scored financial goals and the share price has been on the rise since the Covid share market doldrums of March/April 2020. 

Compared to the equivalent six months of the previous year, top line revenue has increased by 32.2%. Six month revenue to 31 December 2020 was $4.37 million. For calendar year 2020, during a Covid period, the specialist family law firm produced $8 million revenue.

Operating EBITDA was $1.574 million which is a margin of 36% on revenue. Underlying EBITDA was $1.096 million or a margin of 25%. After all business expenses including wages an EBITDA margin of 25% or higher would be the envy of most law firms. 

Based on its P&L for the half year to December 2020, revenue after cost of sales was $3.8m. Profit before income tax was $403K. This is a margin of 10.6%.

Cash flow results were also strong compared to the previous year equivalent period. The company has immaterial debt and is seeking to raise another $5m in equity capital to accelerate its growth objectives. 

Market Capitalisation at the time of publishing is $33 million which is more than four times annual revenue. Shares have generally moved up in this environment of no interest rates but the company’s share price must also be indicative of the degree of positivity coming from investors.