Last month, the firm reported a disappointing 10 per cent decline in revenue across 2015/16, alongside a 19 per cent plunge in profits per equity partner (PEP). Now, for the first time in more than four years, Ashurst has been forced to hold back the quarterly profit distribution it was scheduled to pay out to partners this month. ‘We have always had a conservative and prudent approach to cash management. Our policy is not to borrow to pay out profit to partners,’ said a spokesperson for the firm. Historically, Ashurst has offered a partial payout to partners when it is lacking funds, and has missed quarterly drawings when it was low on profit. Former partners have confirmed that Ashurst didn’t pay out its February quarterly drawings to partners this year, reportedly due to a hefty tax bill in January. The decision to hold back its profit distribution comes just weeks after the firm voted through changes to its lockstep in a bid to retain top talent through financial turbulence.
Sources: Legal Business; The Lawyer
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