If focus is the real determinant of success, then healthcare specialist Capsticks is magic circle material. Its big strategic challenge is that its single market has moved dramatically, but while its public sector client base is certainly under pressure Capsticks still posted a 13 per
cent increase in total revenue last year, from £26.4m to £29.8m. The increase in revenue beat budget by some margin. Indeed, the £3m increase was double the £1.5m Capsticks had budgeted for.
Off the back of that, this summer the London-headquartered firm announced the opening of an office in Leeds, the latest move in its national expansion strategy. The firm also took on a new 10-year lease incorporating additional space at its Birmingham office.
Managing director Alison Morley said the firm also made up three new equity partners at the start of the current financial year, taking the total to 18. Last year’s 15 equity partners shared a net profit of £6.9m, with the equity spread ranging from £251,000 to £568,000.
Capsticks operates a modified five-year lockstep remuneration system with a significant (40 per cent) bonus element built in. Cashflow management at the firm is well under control, with its lockup target of 120 days beaten with ease at year-end with 101 days, consisting of 40 days’ work-in-progress and 61 debtor days.