Brodies reports revenue growth through sustained investment in client services

Brodies LLP reports that the successful implementation of the second year of its current three-year strategic plan led to a 7.5% increase in revenue to £46.01m for the year ended 30 April 2013. This sustains the firm's growth path following the 16% increase reported in 2012.

This was the third consecutive year of revenue and profit growth for the firm, which has seen its turnover rise by 24.9% during the course of its current strategic period and 28.6% since the full impact of the global economic downturn was felt in 2009/10. Over 10 years Brodies has increased its turnover by 216% - representing a compound annual growth rate over that period of 12%.



The past year has seen Brodies continue to respond to changing market conditions and make substantial investment across all areas of the firm to enhance client service. This has included the continued expansion of Brodies' full-service office in Aberdeen, the recruitment of senior lawyers who are independently recognised as leaders in their fields, internal promotions and investment in technology to provide state of the art service to clients. The total number of Brodies staff grew from 513 to 534, an increase of 4%, in 2012/13. Over the same period, the number of fee-earning staff increased from 318 to 326 and the number of partners from 74 to 75.

Over the past year operating expenses, driven by this investment activity, rose by 6.4% to £26.8m, resulting in a 9.3% increase in operating profits before partner distributions to £19.3m. This was against an unpredictable economic backdrop which impacted on the activity of clients operating in a variety of sectors in Scotland, the UK and international markets.

Highlights of the year have included:

• Successful completion of the second year of the firm's current three-year strategic plan, delivering sustained organic growth and a solid increase in turnover without having to borrow or resort to merger. Brodies continues to have no reliance on external debt and has maintained a strong cash balance, which has been in excess of £6m for each of the past three years.

• Six lateral partner hires, strengthening our teams in Corporate & Commercial; Employment, Pensions & Benefits; Property and Dispute Resolution & Litigation - cementing Brodies' position as the biggest legal resource in Scotland.

• The continuing expansion of Brodies' Aberdeen office, which grew from 34 to 46 staff over the course of the last financial year. This included six new lawyers, including three partners, bringing the total number of lawyers to 28. Growth continues into the new financial year.

• Independent recognition of Brodies' quality of service and the strength of the firm.

• Bill Drummond, Managing Partner of Brodies, was named the UK Management Partner of the Year at the Legal Business Awards 2013. In its annual review of the legal market Legal Business magazine commented: "One firm in particular again stands out from the morass of misery that has beset the Scottish legal market in recent years, as it did last year: Brodies."

• In total, the firm's lawyers achieved 21 top tier rankings in the independent legal directories.

Bill Drummond said: "The year just passed witnessed sweeping changes in the legal market in Scotland – be it mergers, takeovers or firms ceasing to trade. Change will continue and will present challenges and, more importantly, opportunities for us and our clients. Against this background the firm remains resolute – delivering for clients a premium service, displaying accuracy, innovation and flair within and from Scotland to all sectors that are key to the Scottish economy.

"Our unremitting focus is on going above and beyond clients' expectations. It is by keeping clients at the heart of everything we do, and by maintaining our reputation as an independent firm that is home to many of Scotland's top lawyers and practice areas, that we hope to continue to deliver the sustained, organic growth we have seen over a decade and more.

"The targeted investment that is being made across the business - in people and infrastructure - positions us well to benefit from stabilising market conditions and our strong balance sheet means that Brodies' management team can continue to seek suitable investment opportunities to further enhance the service we deliver to our clients. We are grateful to our clients for their continued support and for their faith in us to help them achieve their objectives."

 

Release date : 08/07/2013
 

Recent news