Kennedys' mergers pay off with 30 per cent revenue hike
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Consecutive years of major investment has paid off for commercial litigation firm Kennedys, which has reported a 30.7 per cent jump in turnover at the 2008-09 year end.
In the past financial year the firm’s turnover swelled from £51.5m to £67.3m while average profits per equity partner (PEP) rose 16.7 per cent from £300,000 to £350,000. The firm’s PEP figure had stayed flat at £300,000 between 2006-07 and 2007-08, reflecting investment in the firm.
In the last year Kennedys has invested heavily in the growth of its UK offices. Last June it boosted its London office with the acquisition of insurance boutique Davies Lavery (19 June 2008).
At the end of the 2007-08 financial year Davies Lavery had a turnover of £9m.
That merger was followed in July by the takeover of Reynolds Porter Chamberlain’s (RPC) Tiverton office, which joined with Kennedys’ Taunton base (28 July 2008).
The firm then launched two consecutive assaults on DLA Piper’s Birmingham office, taking eight fee earners in October and returning in December to take three partners and two legal directors (15 December 2008).
Turnover from the firm’s February 2008 Manchester merger will also reflected be reflected in the 2008-09 full-year figures. The firm launched in Manchester after raiding local rival Halliwells for a team of three and merging with Kershaw Abbott Solicitors (4 February 2008).
That investment is now reflected in the firm’s year-end figures with revenue per partner also bucking market trends by jumping 27.3 per cent from £1.32m to £1.68m.
The firm has also made significant investment in new offices in the heart of the City, taking five floors in Fenchurch Avenue.
Kennedys senior partner Nick Thomas (pictured) said: “As The Lawyer reported in last year’s 200 survey [The Lawyer UK 200] our minimal growth in 2007-08 disguised a considerable amount of investment in people and infrastructure, which has borne fruit in 2008-09. I now look forward to our further investment in 2008-09 taking us onwards and upwards during 2009-10.”
Readers' comments (3)
Anonymous | 16-Jun-2009 5:15 pm
Looks like all the uncool firms are doing better than the magic circle this year! What next, Watson Farley Williams beating Slaughters?
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Anonymous | 17-Jun-2009 8:08 am
Nick Thomas and his management team show a drive that is unrivalled in the City. As an outsider, I have always been impressed by his ability to see the bigger picture while still providing the personal touch to clients and potential clients. Sir Nigel Knowles and his ilk are old news. This is a real success story.
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Anonymous | 17-Jun-2009 10:31 pm
Fair comments, and congratulations to Nick Thomas etc etc. But let's just pour a little cold water. As the article notes, the two previous year's figures have been held down by the considerable investment required - the rise in PEP could just be a natural bounce taking them to where they should have been anyway. Secondly, Kennedys is a firm geared up to take full advantage of the current market conditions. Thirdly, mergers notoriously take years to bed in - to mix two metaphors, the proof of the pudding will come further down the line. If Nick Thomas is doing better than Nigel Knowles in three years' time, I'll take my hat off to him.
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