A decade after the 2008 crash – Scottish law firms recover

A decade after the 2008 crash – Scottish law firms recover

A decade since the crash and after numerous mergers, Scotland’s law firms have emerged fighting fit – posting strong results for the latest financial year.

In the year to 30 April 2018, Brodies’ revenues grew to £68.6 million, from £66.7 million in 2016/17 while profits before partner distributions also increased, up 3.5 per cent or £1.1 million, to £32.9 million, compared to £31.7 million the previous year.

Burness Paull secured a ninth year of consecutive growth, posting an annual turnover of £57.6 million – up seven per cent from £53.8m the previous year. Profit rose to £23.8m – up eight per cent from £22m on 2016/17 and, as a result, all eligible employees have been given a bonus of five per cent.

Shepherd and Wedderburn reported record revenues and profits this year, on the day of its 250th anniversary. The firm’s revenues rose six per cent to £53.5m in its financial year to 30 April 2018, and profits before partner distributions increased ten per cent to £22m over the same period.

Harper Macleod marked its 30th year in business by announcing record profits in its seventh consecutive year of profit growth.

The firm saw profits pass the £10m mark for the first time ever, with a 4.2 per cent increase to £10.2m on turnover of £26.5m.

Morton Fraser pointed to its investment in talent as the foundation for 60 per cent revenue growth over the last five years.

The firm’s revenues increased by nine per cent year-on-year, topping the £20m threshold for annual billings for the first time in its history (£21.7m), while profits rose 13 per cent to £7.8m.

As a result of its strong results, the firm will reward all staff with up to 13 per cent of their annual salary as part of its performance-related bonus scheme.

Gillespie Macandrew reported a sixth year of growth with an almost six per cent rise in turnover for the financial year 2017-2018.

Turnover for the year to 28 February 2018 was £12.01 million compared to £11.36m for the previous year. The firm reported an eight per cent growth in profit to more than £2.9m.

Law Society of Scotland chief executive, Lorna Jack, told Scottish Legal News: “It is encouraging to hear reports of these large Scottish law firms doing well. The past decade has presented significant challenges for the UK and Scottish economies and I am delighted to see such positive results begin to emerge.

“As the professional body for Scottish solicitors, we will continue to offer support to all of our members across all business types and practice areas providing services to help them lead legal excellence, grow their businesses and succeed.”

Martin Gill, lead partner of BDO LLP in Scotland told SLN: “BDO has closely followed developments in the Scottish legal sector for many years. The success of the leading firms is largely due to their ability to evolve despite facing continuous change.

“Many have invested significantly in their people and technology over recent years and this, together with a focus on profitability, is clearly delivering results.

“A number of firms have cited a significant increase in work from firms outside of Scotland as well as other international referrals which is no doubt as a result of successful networking south of the border. These leading firms are clearly not complacent and are working hard to maintain resilience in the face of future uncertainties such as Brexit.”

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