As the firm ramps up for a defining election, DAC Beachcroft has announced its financial figures for 2014/15 saying it had seen a 3% rise in its total billings to £200m up from £194.4m last year.
The firm also stated that operating profit before exceptional items rose by 10% from £30m to £33m – the use of that metric comes after the firm was hit by an expensive IT failure last year which was booked as an exceptional item and knocked £2.9m off profits, the firm said that whether there are any exceptional items for this year will be determined during the audit process. The firm’s £200m billings figure is 1.5% higher than the firm’s £197m fee income figure which was reported in its 2013/14 LLP accounts.
Based on the operating profit before exceptional items figure, the average amount received by equity partners was £307,000 for 2014/15– up 10% on last year’s £278,000. The firm also said that net debt had fallen from £30m to £25m as of 30 April 2015 while lock-up days had also decreased from 164 to 149 reducing the firm’s need for working capital.
DAC Beachcroft managing partner Paul Murray (pictured), who is set to step down from his role later this year, said: ‘This is a solid performance across key areas of our business and I am very pleased with the outcomes reflected in the provisional numbers. Billings exceeded our plans for the year and the Operating Profit figures reflect improvement in underlying profitability and margins.’
‘In addition, the lock-up days values highlight our efforts to improve working capital management and the reduction in net debt is the practical consequence of these focused endeavours. This performance represents improvements that we were determined to make and that will be continued.’
The firm is currently getting set for an election this summer as it sees senior partner Simon Hodson also stepping down. Potential candidates for the two executive roles being cited currently are: head of the firm’s insurance sector, David Pollitt and Richard Beaty, a partner in the firm’s professional and financial risk group, as well as real estate head Michael Bothamley and Leeds-based partner Virginia Clegg.
michael.west@legalease.co.uk
