DAC Beachcroft has seen operating profit jump by 11.6 per cent from £31.1m to £34.7m according to its 2014/15 accounts, despite turnover remaining flat.
The firm’s net profit increased by 19.6 per cent, from £25.5m to £30.5m, while the top of equity increased from £439,000 to £468,000.
Despite the increase in profit DAC’s turnover remained flat at £198.5m.
DAC managing partner David Pollitt said: “These results reflect positively on our continuing drive to grow profit and operating margins while maintaining our focus on good business disciplines, particularly with the reduction in lock-up. On the whole, they are extremely encouraging and show that our firm is beginning to reap the rewards of careful investment and prudent financial management.”
As well as increasing profit the firm managed to reduce its net debt by £5.1m to £24.6m at the end of the 2014/15 financial year.
DAC cut costs through reducing its total headcount throughout the year. The total number of employees at the firm fell from 2,129 to 2,027. The reduction in headcount allowed DAC to reduce its staffing costs by £4.4m to £104.8m.
Reducing lock-up has been a major focus for the firm since Pollitt was elected as managing partner last year. Speaking to The Lawyer Pollitt said that for every day the firm reduced its lock-up it benefitted from an extra £500,000 available in the bank.
As a result of this focus DAC reduced its lock-up from 164 days to 149.