Lambert Smith Hampton’s latest results have revealed a professional indemnity provision of £1.75m.
It is understood that the claim was made in 2007 but the provision was only registered in the company’s accounts for the first time for the year 2017.
The company’s accountants, PwC, said: “Assumptions have been robustly challenged by the group’s audit and risk committee… but [it was] noted that evaluating these potential liabilities is highly judgemental and in smaller populations of claims, including old, more complex cases, estimates can be significantly affected by the outcome, good or bad, of a limited number of claims.”
The accounts also show the company, led by chief executive Ezra Nahome, saw the remuneration of its highest paid director fall by just over 50% to £423,000, including £21,000 of defined contribution to a pension scheme.
The total aggregate payroll costs for the company came down by £5.2m to £59.2m, while its total staff number also came down by 51 to 987.
The company’s overall performance for the year saw its revenue remain almost stable with a 0.6% increase at £92.1m. It generated a £5.3m profit, a 768% increase on the year prior, which the results attributed to “lower contingent consideration costs on previous acquisitions” as well as cost control.
LSH is owned by listed estate agency Countrywide and the parent company has endured a dismal past two years of financial performance as it faces headwind in the residential market.
LSH has been one of the best-performing elements of Countrywide and has attracted interest from private equity firm Tosca Fund.
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