Legal Business

Brodies and Shoosmiths among firms reaching new revenue highs as results season continues

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Financial results BrodiesCharles Russell SpeechlysClyde & CoShoosmithsWatson Farley and Williams

A clutch of major law firms have continued the trend for strong 2023-24 results, with Brodies, Shoosmiths, Clyde & Co and Watson Farley & Williams among the latest to reveal healthy financial figures.

Brodies has today (15 July) posted a 7.5% revenue increase to hit £114.3m, marking 14 consecutive years of growth for the firm after it hit a key milestone last year when it became the first Scottish firm to pass the £100m mark.

After a 6% bump last year, profit held steady with a 1.2% increase from £48.6m to £49.2m. Profit per equity partner (PEP) also stayed flat at £846,000.

Managing partner Stephen Goldie, who replaced Nick Scott in May following Scott’s retirement, said that the firm has made progress across all core practice areas – banking and finance, corporate and commercial, dispute resolution and risk, personal and family, and real estate. ‘Our strategic plans for the next three-year cycle are now underway and we look to the future with confidence, in ourselves and in the resilience and ambitions of the clients that we work with,’ he said in a statement.

Clydes has also posted a strong set of results, with revenue up 10% to £845m, and PEP up by more than 4% to £739,000, with profit up 3% to £174.4m.

The headline turnover increase comes after the 22% increase the firm notched last year, though only 6% of that was ‘organic growth’, with the rest of the bump accounted for by the completion of Clydes’ merger with BLM.

Clydes continued to expand this year, opening new offices in Warsaw and Jeddah in December and May respectively. The UK accounted for 47% of the firm’s total revenue, with the proportion of revenue generated outside the UK a percentage point down on last year’s 54%.

Europe was the fastest growing region with a 17% increase in turnover. The shares accounted for by the US and Asia-Pacific were each down by half a percentage point on last year, to 21.5% and 11.5% respectively. The Middle East and Africa accounted for 12% of the firm’s turnover and Latin America for 2% – the same proportions as last year, while the UK saw 9% growth.

Watson Farley & Williams has also posted double-digit growth of 11%, with revenue at £238.4m, up from £214.7m last year.

Overall profit also rose by 7.2% to £66.8m from £62.3m, with PEP remaining steady at £593,000, a slight increase of 1.5% from last year’s £584,000. Equity partner numbers, meanwhile, went up nearly 6% from 107 to an estimated total of 113.

Commenting on these results in a statement, managing partner Lindsey Keeble said: ‘We continue to build on the successes of previous years with double digit global income growth. With a majority equity partnership, we continue to invest in the firm to build a sustainable business with strength and depth at all levels.’

Revenue was also up at Charles Russell Speechlys, where a 13% bump took turnover to £218.3m after a 9% increase last year.

Profit was up by more than 20% to £45.9m, while PEP went up more than 30% to hit £661,000, comfortably offsetting last year’s 3% dip.

The firm’s UK offices generated £174.4m (a little under 80%), with £43.9m from overseas. International revenue growth was faster than the firmwide average, at 15%, with the Luxembourg, Paris, and Switzerland offices singled out as strong performers. The firm also reported 30% revenue growth in Asia, boosted by lateral hires and the July launch of its Singapore office.

‘Our results this year paint a picture of sustained growth’, said managing partner Simon Ridpath in a statement. ‘The fact we continue to see strong revenue and profit numbers and investments back into the firm bodes well for the future, and we remain fully confident in our strategy.’

The firm’s strategy still has private capital as a ‘core focus’ according to Ridpath who also mentioned the ‘raft of senior lateral hires across the firm’, referencing the 22 partners the firm has taken on since the last financial year.

At Shoosmiths, meanwhile, revenue ticked up 5% to push the firm over the £200m mark for the first time to hit £206.7m. Profit was up 5% to £66m, while PEP jumped 16% to £781,000.

Though the increase in turnover was slightly below both the 7% the firm posted last year and the previous year’s 8%, the firm exceeded last year’s performance on profit, which increased 3% last year, and PEP, which went up by just £1,000. The corporate and litigation departments both outperformed the wider firm at 15% and 12% growth respectively, while real estate stayed flat.

elisha.juttla@legalbusiness.co.uk

alexander.ryan@legalbusiness.co.uk

tom.cox@legalease.co.uk

Legal Business

‘Pleased to have continued our upward trajectory’: Shoosmiths continues revenue and profit growth

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Financial results 2022/23 Shoosmiths

Legal Business Law Firm of the Year Shoosmiths has today (19 July) reported another year of growth, with a 7% rise in revenue taking the firm’s turnover to £194.1m following last year’s 8% increase.

Profitability was also up by 3%, hitting £62.7m, while profit per equity partner (PEP) PEP nudged up by £1,000 to £676,000.

These growth rates are down on last year when profits rose by 9% and PEP by 3%. But the firm was nonetheless positive. ‘It’s been a challenging environment for all businesses’, said chief executive David Jackson. ‘To have produced these results at a time of such turbulence is pretty impressive. We’re pleased to have continued our upward trajectory.

‘High inflation and the war for talent in the legal market have been challenging issues to navigate. But we took the decision as a board that we were going to prioritise investment in our people.’

This took the form of another accelerated pay review in November, following one in May 2022, as well as a new collegiate bonus scheme and expanded care and benefits packages.

The results also come in a year that saw the firm launch a new strategy, citing mobility, technology, financial services, living, and energy and infrastructure as its core sectors.

Jackson explained: ‘We’ve identified the areas in which we can excel, and we’ve really turbocharged our investment in those areas. We’ve stopped doing some of the work that isn’t strategically aligned.’ To this end, Shoosmiths jettisoned its private client practice in June to focus on its core real estate, corporate, and litigation practices.

‘The standout performer of the past 12 months has been our corporate practice. We saw 15% growth there, which  makes us an outlier, given the slowdown in transactional activity that we’ve seen.’

‘What we’re focusing on now’, said Jackson, ‘is moving up the value chain.’

Chief financial officer Chris Stanton also noted ‘another strong year in litigation’, though growth there was less impressive than for non-contentious work. ‘Corporate is up to about a quarter of our total business now, and we’re looking to continue to build there. Real estate and advisory are still our powerhouses, but corporate is catching up.’

Looking ahead, Jackson explained, ‘the plan is to have a balanced portfolio across corporate, real estate and litigation.’

The firm also has ambitions to expand its geographical spread after opening its first international office in Belgium last year. ‘Our Brussels office gives us a fantastic platform to evolve our competition and regulatory practice, and we aim to further build that out over the next 12 months’, said Jackson.

‘We’re keeping an open mind as to where further opportunities might develop. We’re strong in technology, for example, and that might lead us to certain geographies where there’s a strong technology market.

‘We don’t have any concrete plans at the moment. Germany would make sense for a firm like us, given our expertise in automotives and financial services – but we’d have to wait and see.’

alexander.ryan@legalbusiness.com

 

Legal Business

National champions: Surging revenues at Shoosmiths and TLT yield record results

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Financial Results 2021/22 ShoosmithsTLT

Following on from their impressive performances last year, top 50 national players Shoosmiths and TLT have both unveiled strong 2021/22 financial results, characterised by pacey revenue increases.

At Shoosmiths, revenue jumped 8% from £167.9m to £181.8m, while net profit grew a healthy 9% from £55.4m to £60.7m. Profit per equity partner (PEP) was up by a less eye-catching 3%, from £658,000 to £675,000, however last year’s robust 41% jump in PEP is fresh in the memory.

Making the PEP result even more palatable was the firm’s significant investment in its people – Shoosmiths brought forward its annual pay review by two months, made a discretionary ‘thank you’ bonus payment equal to 3% of salary to all staff in May, and has announced an additional £1,000 payment for all employees in September to ease the cost-of-living burden.

During the year, Shoosmiths also opened its first ever international office in Brussels, to meet growing client demand for EU competition, regulatory and trade law advice.

Chief executive David Jackson told Legal Business: ‘It’s another really strong year. We’re really pleased with the sustained profit growth over the last two years, particularly considering that everyone is facing inflation fears and with the backdrop of the war in Ukraine. It’s testament to our amazing people.’

In terms of practice areas, Jackson reported the firm’s real estate team had a ‘stonking year’, and that Shoosmiths’ corporate practice also performed well after recent heavy investment. Moreover, Jackson is upbeat when it comes to future transactional activity: ‘Because we operate in the premium mid-market, deal activity is still relatively strong as we speak. Maybe the mega deals have started to slow down for the Magic Circle, but our market remains robust.’

Meanwhile, TLT has boosted its turnover by a startling 30% from £110m to £144m, exceeding its £140m revenue target set for 2025 three years early.

Managing partner John Wood attributed the result to a combination of TLT’s national firm status and its attractiveness to talented recruits. He told Legal Business: ‘Part of the revenue increase is down to something that’s happened over the last three years, with work going from the larger City firms to the bigger national firms. Clients have said: “Why am I using a big City firm when I could be using a national firm? Why am I paying the uplift?”

‘The other element is flexible working – it’s really worked for us. It works for our clients and it works for our colleagues. It also works well for prospective candidates – the first question they ask is: “What’s your approach to flexible working?”’

Emphasising the recruitment drive, TLT added over 400 new joiners throughout the year, including five partner-level hires.

Wood reported growth across all practice areas, but highlighted corporate as ‘very strong’ and described TLT’s clean energy team as ‘absolutely phenomenal’. Despite the cause for cheer, he remains vigilant for the year ahead: ‘This year was a leap forward for us. To replicate that next year will be challenging – I’m not sure how it’s going to play out in a high-inflation economy. Maybe the banking services team will do well!’

Tom.baker@legalease.co.uk

Legal Business

Sponsored firm profile: Shoosmiths

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Dispute resolution Shoosmiths

Shoosmiths’ specialist team of litigation, international arbitration and dispute resolution lawyers, based in 13 locations across England, Scotland and Northern Ireland, helps clients redress the balance – maximising value, minimising risk and enhancing reputations.

Through our unique advisory services solutions and award-winning litigation services offer, we provide early practical and pragmatic advice to minimise risk and avoid disputes arising.

Legal Business

Legal 500 Data: Behind the story

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The Legal 500 Shoosmiths

The Legal 500 UK 2020 : UK and London changes

As the submissions deadline for the next Legal 500 UK guide fast approaches, an analysis of last year’s data has identified Shoosmiths as the top firm for both new rankings and moves up, outpacing its competitors across the UK market.

Legal Business

‘Last year wasn’t a blip’: Shoosmiths revenue rises 7% as profit growth slows

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Financial results 2018/19 Shoosmiths

Shoosmiths believes it is still on target to hit £200m in revenue after a steady financial year which saw modest growth and steady profit per equity partner (PEP) results after an 18% surge last year to £434,000.

The results today (24 July) showed a 7% increase in turnover to £137.6m, while net profit was up 6% to £37.9m, a significant slowdown on last year’s 22% growth. PEP was almost flat, edging up 2% to £441,000, but the result comes after an impressive hike in the metric last year.

‘It’s a good year, the numbers have stood up well and it builds on the showing from last year,’ Shoosmiths chief executive Simon Boss (pictured) told Legal Business. ‘Last year wasn’t a one-off or a blip.’

One of the primary drivers for this year’s growth was the firm’s corporate practice, where revenue grew 12% as the firm brought in five corporate partner hires over the year. Shoosmiths counts 13 locations across the UK and 195 partners.

However, this year’s revenue growth is a slight slowdown on last year’s 10% increase. But Boss argues the firm’s financial modelling shows it remains on target to reach its £200m-revenue ambition, and given increasingly difficult market conditions, he says the performance was impressive.

‘It comes against the back drop of political and economic uncertainty in the UK and globally,’ he said. ‘But our strong UK focus is playing out well in the current environment.’

Boss is relatively new to the CEO role, having assumed the position on the 1 January after succeeding former CEO Claire Rowe who had spearheaded the firm for over a decade.

thomas.alan@legalease.co.uk

Legal Business

Financials 2017: Shoosmiths posts 9% hike in revenue while PEP remains flat

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Financial results 2017 Shoosmiths

National firm Shoosmiths has posted a 9% rise in revenue from £107m to £116.7m, but profit per equity partner (PEP) at the firm has remained flat at £366,000.

Overall profit at the firm was up 17% to £29.38m, but the firm increased the number of full equity partners from 36 to 41, an increase of 14%.

Shoosmiths chief executive Claire Rowe (pictured) said that income in the corporate practice grew by 14%, while commercial and private client also performed well.

‘Deal flow was quiet over the summer months, but our corporate team certainly bucked the trend in terms of the sheer volume of deals that they completed over the course of the year. Our restructuring and insolvency team also had a really strong year. Elsewhere, we had strong growth in the private client team that was largely in clinical negligence and family matters – reflecting our investment in previous years,’ she said.

Over the last year, the firm has expanded by opening offices in Northern Ireland and Leeds, bringing the total number of UK offices to 12.

In July 2016, for the firm’s Leeds opening, it hired an employment duo from Yorkshire-based Gordons, as part of an ongoing strategy to increase its UK legal market share.

Last December, Shoosmiths confirmed plans to merge with Belfast firm McManus Kearney, taking on the firms two partners Mark Frances Kearney and Jason Bryne and 14 staff. Shoosmiths saw a net increase of 20 partners across all offices.

Other firms to announce their financials so far have seen similar growth. After a subdued 2015/16 financial year, Pinsent Masons has broken the £400m barrier with revenues up 11% from £382.3m to £423.1m in 2016/2017.

Profit per equity partner (PEP) jumped 14% from £552,000 to £625,000. Excluding the impact of currency fluctuations, the firm achieved like-for-like turnover growth of 7%

kathryn.mccann@legalease.co.uk

Legal Business

Shoosmiths drives Leeds litigation practice with Gordons hire

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Strategic recruitment Shoosmiths

In its latest northern push, national firm Shoosmiths has hired leading commercial litigator Matthew Howarth as a partner from Gordons, to head up the firm’s Leeds commercial litigation practice.

Howarth is the fourth partner to move across from Gordons since Shoosmiths launched in Leeds in December 2016.

His practice is highly rated for acting on large scale professional negligence recovery claims for banks. He has also advised companies on confidential information claims, breaches of warranty disputes and shareholder actions. 

Gordons is rated second-tier for commercial litigation in the Legal 500 in Leeds and West Yorkshire and notably strong in the financial services sector. Howarth was also a member of Gordons’ management board and spent eight years as head of its 27-strong commercial litigation department.

The firm’s Leeds head Paul Stokey, who also joined Shoosmiths from Gordons, said this latest hire further underlines Shoosmiths’ ambitions to establish a hub of legal excellence for clients in the North.

He said Howarth had an excellent reputation as a first class litigator both in the Yorkshire market and nationally. ‘I look forward to working with him as we continue to expand by attracting the most talented and ambitious lawyers to the firm,’ he said.

The hire follows a series of appointments this year for the top 40 UK firm, including two other partners from Gordons, Simon Robinson and Phil Crowe in employment, former Simpson Millar national head of family law Peter Morris and real estate partner Richard Bellamy and Judy Fawcett from Addleshaw Goddard and Ward Hadaway respectively.

With 12 offices across the UK, Shoosmiths announced a turnover of £107m to end of April 2016. The firm also announced it was launching in Northern Ireland through a merger last December with Belfast firm, McManus Kearney.

Georgiana.tudor@legalbusiness.co.uk

Legal Business

Shoosmiths enters Northern Ireland through takeover of insolvency firm McManus Kearney

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Legal mergers Shoosmiths
legal-business-default

The second LB 100 firm to announce a move into Northern Ireland this week, national firm Shoosmiths has confirmed plans to merge with Belfast firm, McManus Kearney.

Shoosmiths, which has 11 other offices in England and Scotland, said it ‘was prompted to move into Northern Ireland as a commitment to providing truly national service for clients’ of its recoveries services group.

Specialised in domestic debt and insolvency matters, McManus will rebrand as Shoosmiths from today (1 December) and its two partners, Mark Frances Kearney and Jason Byrne, will remain at the firm’s Belfast office alongside 14 staff.

Shoosmiths chief executive Claire Rowe (pictured) said the merger was motivated by client demand and ‘our wish to have a commercial presence in Northern Ireland’ as a result of work the firm undertakes in recoveries and commercial financial services.

Waine Mannix, Shoosmiths’ head of recoveries services, said the group has worked with McManus Kearney ‘for a number of years, sharing places on clients’ panels and through instructing the firm.’

Shoosmiths’ partner Stephen Dawson, who leads the firm’s financial services advisory team, will also lend his support to the growth and development of the new office. He already lives in Northern Ireland.

The firm is in good stead to make key investments, with revenue modestly rising 4% to £107m for the 2015/16 financial year, down on the firm’s double digit growth last year of 10%.

On Monday (28 November) fellow LB 100 firm DWF announced it had secured a merger in Northern Ireland with Belfast firm C&H Jefferson. Known to specialise in commercial property and disputes, for its reputation in professional negligence, the 20-partner firm officially joined DWF, giving the latter 12 offices as well as offices outside the UK in Brussels, Cologne, Dubai, Dublin and Munich.

sarah.downey@legalease.co.uk

Legal Business

Revolving doors: National hires for Shoosmiths and DLA, while Ashurst also boosts its ranks

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Strategic recruitment AshurstDLA PiperShoosmiths
legal-business-default

In a week which saw multiple departures from Ashurst, the firm sought to reverse the trend with a hire in its German tax practice, while DLA Piper and Shoosmiths made national hires and White & Case bulked up in London.

Ashurst has hired partner Martin Bünning from Jones Day in Frankfurt, where he was a partner since 2011. His practice focuses on tax advice for investors in real estate and other alternative investments, as well as on tax structures for open-ended and closed funds.

Commenting on the hire, Tobias Krug, managing partner of Ashurst in Germany said: ‘Martin Bünning is exceptionally experienced in advising on the tax aspects of national and cross-border real estate, private equity and corporate transactions. He is ideally suited to Ashurst given the firm’s strength in these areas and we are confident he will make a significant contribution to the team.’

Meanwhile Shoosmiths boosted its national regulatory practice with the appointment of two partners, Roy Tozer in Birmingham and Charles Arrand in Milton Keynes from DLA Piper.

Arrand was also previously at Pinsent Masons and has experience in advising both individuals and well-known brands on a range of regulatory issues including investigations and prosecutions in relation to regulatory offences while Tozer has been involved in high-profile health, safety and environmental cases as well as multi-jurisdictional product liability cases.

Stuart Little, commercial practice group head at Shoosmiths, commented: ‘The addition of Roy and Charles’ expertise will further grow our highly successful regulatory practice, allowing all our clients to benefit from first class regulatory and compliance advice alongside our award winning client experience.’

DLA has also made a hire in Birmingham, strengthening its real estate team with the appointment of Monique Sutherland from Squire Patton Boggs. Sutherland has been involved in a number of landmark developments in the Midlands including Paradise Circus.

In London, White & Case expanded its global tax practice with the addition of Michael Wistow as co-head of the firm’s tax practice in EMEA from Berwin Leighton Paisner. His practice is focused on corporate, finance and real estate industry-based transactions and clients, including real estate finance, property and debt funds, securitisation, leasing and structured financings and corporate

The firm’s London office executive partner Oliver Brettle said: ‘With our recent expansion across our practices in London, and continued focus on profitable growth, we believe a larger tax team is appropriate and necessary here in London. The team will continue to focus on both high value tax advice-driven mandates and supporting our transactional practices. Our tax lawyers will play a particularly strategic role in the ongoing development of our real estate, private equity, finance and infrastructure industry practices.’

kathryn.mccann@legalease.co.uk