Leeds firm Gordons is right at the top of the UK 200 profitability table, with a profit margin of 35 per cent and an average profit per equity partner (PEP) of £888,000 in 2010-11. The firm’s tightly held equity reduced in size between 2009-10 and 2010-11 from 11 to nine equity partners, helping PEP rise, despite net profit dropping very slightly from £8.4m to £8.3m.
The equity spread ranged from £373,000 to £1.9m, putting Gordons’ best-paid partners on par with those at magic circle firms. Remuneration is entirely merit-based. During the past year the non-equity partnership was split into two tiers, with four fixed-share partners promoted to junior equity in a bid to improve career progression into the equity.
Gordons’ revenue rose by 6 per cent in 2010-11 to £23.3m owing to across-the-board growth from all of its departments. Managing partner Paul Ayre said there was no standout performer in terms of teams.
Gordons spent much of 2010-11 carrying out a review of processes and personal development. It also launched a London office in January 2011, which is expected to make a sizeable contribution to turnover in the current financial year. Significant client wins included an instruction from a major Chinese retailer on its entry into the UK market.