Prominent litigation firm Pogust Goodhead has published its long-overdue 2023 accounts, revealing a staggering annual loss of £95m and triggering a formal warning about its ability to continue trading.
Financial Freefall and Auditor's Warning
After a four-month delay, the legal group behind major lawsuits, including the landmark case against BHP, filed its financial statements with Companies House. The figures show a dramatic collapse in turnover, which plummeted to just £3.6m in 2023 from £53.1m the previous year. The final loss after tax exceeded £95m, leaving the firm with net liabilities of over £604m.
Both the company's directors and its independent auditor, MHA, have highlighted a "material uncertainty" regarding the firm's viability. They noted that its survival is heavily dependent on securing further funding to meet its working capital needs.
Leadership Turmoil and Unusual Transactions
The financial disclosures come after a period of significant internal upheaval. One of the firm's founders and its former CEO, Tom Goodhead, was ousted in August 2025 without a public explanation. The accounts also reveal that during 2023, the company advanced over £3m to an individual who was a director at the time. A separate debt of £4.2m owed by this former director was waived by the company after the reporting period ended.
A spokesperson stated that governance changes, including a move to an independent board in August 2025, have been implemented to strengthen financial stability.
Litigation Model and Future Funding
Defending the results, a spokesperson for Pogust Goodhead said the accounts reflect a business built on long-running, high-value litigation rather than traditional annual billing. "We invest heavily upfront to run claims for clients on a no-win, no-fee basis," they said, adding that costs are only recovered when cases conclude successfully.
The firm's future is closely tied to the continued support of its major backer, US hedge fund Gramercy Funds Management. It secured $552m (£408m) in funding from Gramercy in 2023, with a further $65m top-up agreed in 2025. The firm called this a "clear endorsement" of its litigation portfolio.
Despite this backing, the firm's 2024 accounts are now also overdue. Pogust Goodhead says it is working closely with Companies House to file them accurately and transparently in due course.
