Brodies reveals revenue rise of 7.5 per cent to £46m

Scottish firm Brodies has posted a 7.5 per cent rise in revenue and an increase of £75,000 at the top end of its equity spread.

Revenue last year stood at £46m, up from £42.8m last year. Net profit rose by 4 per cent from £12.9m to £13.4m while average profit per equity partner rose by 7.2 per cent from £400,000 to £429,000.

Staff numbers rose by 6 per cent on a full-time equivalent basis from 475.6 to 505 while fee-earner numbers increased by 5.5 per cent from 292 to 308. Lawyer numbers rose by 8.6 per cent from 220 to 239 although the number of equity partners decreased from 32.3 to 31.2. All staff and partner figures are an average across the 2012-13 financial year.

Brodies’ equity spread also expanded significantly in the last year. Partners at the bottom of the equity spread experienced a £5,000 drop in renumeration from £230,000 to £225,000 while the payout to those at the top rose from £550,000 to £625,000.

The firm’s practice area split remains broadly similar to last year’s breakdown. Litigation and property each generated 29 per cent of the firm’s revenue while corporate was responsible for 19 per cent and finance for 7 per cent. The remaining 16 per cent was split between employment and private client work.

Last year, litigation made up 30 per cent of revenue and property 29 per cent while corporate was responsible for 18 per cent of work and finance for 7 per cent. Employment and private client work generated 16 per cent of revenue.

Managing partner Bill Drummond asserted that the figures were a result of the second year of the firm’s three-year strategy, through which it is focusing on organic growth and avoiding debt.

Brodies has increased its revenue for the last three years. Its 2012 revenue was an increase of 16 per cent and in 2011 it announced revenues of £36.9m, a rise of 3 per cent from its 2009/10 figure.

Drummond said in a statement: “The year just passed witnessed sweeping changes in the legal market in Scotland – be it mergers, takeovers or firms ceasing to trade. Change will continue and will present challenges and, more importantly, opportunities for us and our clients.

“Against this background the firm remains resolute – delivering for clients a premium service, displaying accuracy, innovation and flair within and from Scotland to all sectors that are key to the Scottish economy.”

He added: “The targeted investment that is being made across the business – in people and infrastructure – positions us well to benefit from stabilising market conditions and our strong balance sheet means that Brodies’ management team can continue to seek suitable investment opportunities to further enhance the service we deliver to our clients. We’re grateful to our clients for their continued support and for their faith in us to help them achieve their objectives.”