Amid fears over the health of England’s top firms in the aftermath of the announced failure last week of regional practice Cobbetts, The Lawyer newspaper reports that the Lawrence Graham’s 2011-12 turnover fell from £58 million to £56m, while operating profit before payment to partners nosedived 31 per cent from £20.7m in 2010-11 to £14.2m in 2011-12.
The profit figure was eclipsed by the firm’s drawings, with members taking out $21m in 2011/2012.

Gleaming offices

According to the firm’s accounts, its annual property bill alone is £5.1m. Several years ago, the practice moved to a state-of-the-art gleaming glass structure on the south bank of the Thames, next door to the London mayor’s headquarters.
The newspaper found that partner capital in the firm at the end of last April was £11.3m, with LG saying it continues to use what it believes is an ‘appropriate mix of both debt and partners’ funds’ to provide working capital for the business.
The firm said in the accounts: ‘The fall in profitability was more principally due to increased property costs in London and occupying more space than we need. To mitigate this steps are being taken to let surplus space.’