Litigation powerhouse Stewarts Law has posted a second consecutive year of double digit revenue growth for the 2015/16 financial year, with revenue increasing 18.5% to £62.1m while profit per equity partner rose by 25% to £1.6m.
Net income stood at £29m while compensation for all partners totalled £35.8m. UK fee income amounts for the lion’s share of firm revenue with £61.8m and top of equity now stands at £1.8m – bottom of the equity starts at £642,000.
The firm said the breakdown of revenue is drawn purely from litigation and includes £853,000 in respect of ‘value recognised on certain contingent work where the income recognition policy applied in our management accounts differs to the statutory financial statements.’
Managing partner John Cahill said the firm was pleased to have marked the end of its 25th year with ‘another solid set of financial results.’
The firm added 20 lawyers to its headcount over the last year including through lateral hires, internal promotions, as well as seven new training contracts.
Major ongoing disputes for the firm include the £4bn shareholder group action against the Royal Bank of Scotland (RBS), and preparing for a legal action against Tesco following the supermarket giant’s overstatement of profits by £263m in 2015.
Last year the firm recorded double digit revenue growth of 14% to £53m alongside net profits rising 12% to £23m, although PEP remained flat at £1.1m.
On this year’s results, Cahill (pictured) added: ‘We have a busy and challenging year ahead with a number of substantial trials and the launch of trust litigation in September.’
Stewarts Law has boosted pay and incentives for junior lawyers, paralegals and business services staff in a bid to maintain and enhance competitive advantages.
The firm has boosted salaries for all staff, though it declined to confirm exact figures. New incentives for all staff include an extra day off on birthdays and access to private GPs and discounted gym membership. The changes came into effect earlier this month on 1 May.
sarah.downey@legalease.co.uk
