The IT data breach at Simplify, which forced it to temporarily take down its systems, cost the company close to £7m, the annual report of its holding company UKLS Acquisitions has revealed.
Simplify was the victim of a cyber-attack in November 2021, which created mayhem in property chains across the UK. The incident affected Premier Property Lawyers, JS Law, DC Law and Advantage Property Lawyers, with many property deals stalled.
The Annual Report and Financial Statements of UKLS Acquisitions for the year ended 31 March 2022 reveals the incident cost the firm in t he region of £6.8m.
The report, which can be accessed here, explains: “The resultant restoration of systems required the level of new cases taken in to be significantly reduced for a period of approximately 10 weeks, which has dampened the results for the financial year, which otherwise would have been on track to deliver a record number of completions.
“In the period immediately following the attack the Group has closely liaised with its regulatory bodies (principally the Council for Licensed Conveyancers) to ensure that the risks to customer data, status and funds were minimised and to provide all necessary reassurances that continuous service could be provided to existing customers of the Group.”
According to the report, turnover for the Group was £140.3m (2021: £137.5m) of which £126.6m (2021: £124.6m), or 90% (2021: 91%), related to Legal Services and £13.7m (2021: £12.9m), or 10% (2021: 9%), related to Property Services.
