Revenue at the firm, which focuses on defending medical and clinical negligence claims, jumped from £89.2m to a record high of £95.1m, largely as a result of the firm’s acquisition of Leeds-based firm Ford & Warren in July 2015.

Falling PEP

Net profit fell by 6.5 per cent, from £10.7m to £9m, while average profit per equity partner (PEP) declined from £308,000 in 2014/15 to £248,000. PEP stood at £312,000 in 2013/14, down from £338,000 the year before.

Revaluation and merger costs

Managing partner John Schorah attributed the fall in profits to a combination of revaluing the firm’s work in progress due to the growing amount of work in the personal injury space being fixed fee and an increase in costs last year due to investments, including its merger.

Business strategy overhaul

The firm is also gearing up to overhaul its business strategy and reorganise its internal leadership structure, which will involve reducing the size of its board and the introduction of client-focused teams tasked with developing new revenue streams from existing clients and finding new clients.

Sources: Legal Business; The Lawyer