Fladgate

UK 200 RESULTS 2010

Position:
Movement since 2009

Turnover (£M):
Profit per equity partner (£K):
Earnings per partner (£K):
Equity spread (£K):
Net profit (£M):
Profit margin (%):
Revenue per fee-earner (£K):
Revenue per lawyer (£K):
Revenue per partner (£K):
Revenue per equity partner (£K):
Total number of fee-earners:
Total number of qualified lawyers:
Total number of partners:
Total number of equity partners:
Total number of female partners:
Total number of female equity partners:
Total number of staff:
Leverage ratio (fee-earners per equity partner):

=95
DOWN

21.8
370
240.91
160-580
6.96
32
259.5
286.8
495.5
1,147.4
84
76
44
19
10
2
165
3

London-based Fladgate celebrated its 250th anniversary in 2010 with a move to new offices in Covent Garden. The location, midway between the West End and the City, says much about the firm’s strategy – it is eager to ditch the ‘West End property firm’ tag and believes the relocation from Mayfair is evidence of its confidence, ambition and solid strategy for the future.

The figures seem to justify the firm’s belief that the property tag should be dropped. While property accounts for 33 per cent of all revenue, that is considerably less than the 45 per cent of fee income generated by its corporate practice, the whole contribution of which rose by three percentage points from last year’s figure. More than 60 per cent of income now comes from corporate and litigation.

Crucially, the Great Queen Street offices allow the firm room to expand.

Fladgate has made several hires in recent months, including Forsters’ former corporate chief Jeremy Whiteson and former Harbottle & Lewis managing partner Lawrence Abramson, who joined as a partner in the media and entertainment practice. However, it also lost up-and-coming litigator Simon Cullingworth who left the firm for US trial lawyers Kobre & Kim.

The firm’s turnover continued to decline, although not as badly as in 2008-09, when income dropped by 12.5 per cent. In 2009-10 revenue fell by 8 per cent, from £23.7m to £21.8m.

In the same period average profit per equity partner dropped by 5 per cent to £370,000, although net profit held steady at £7m.

UK 200 RESULTS 2009

Position:
Movement since 2008

Turnover (£M):
Profit per equity partner (£K):
Earnings per partner (£K):
Equity spread (£K):
Net profit (£M):
Profit margin (%):
Revenue per fee-earner (£K):
Revenue per lawyer (£K):
Revenue per partner (£K):
Revenue per equity partner (£K):
Total number of fee-earners:
Total number of qualified lawyers:
Total number of partners:
Total number of equity partners:
Total number of female partners:
Total number of female equity partners:
Total number of staff:
Leverage ratio (fee-earners per equity partner):

85
DOWN

23.7
390
244.4
175 - 600
6.94
29
266
296
527
1,317
89
80
45
18
11
1
180
3.44

West End firm Fladgate, for years one of the best performers in its market, suffered during the 2008-09 financial year, with turnover dropping 12.5 per cent from £27.1m to £23.7m and average profit per equity partner (PEP) down 37 per cent from £618,000 to £390,000.

This is unsurprising given the firm’s heavy exposure to the transactional corporate and property markets – 34 per cent of its 2008-09 revenue came from its real estate practice. That said, that represents a drop on two years ago, when real estate accounted for 40 per cent of revenue.

These unspectacular results followed the firm’s muted performance in 2007-08, when turnover rose 6 per cent and PEP was up just 1 per cent.

Fladgate operates an entirely merit-based remuneration system. Last year the spread for its 18 equity partners ran from £175,000 to £600,000.

The partnership path is divided into four stages. Members join as salaried partners before being awarded a relatively small equity share when they become junior equity partners.

Equity partners receive 80 per cent of pay in the form of a fixed share and 20 per cent from the equity pool. Full equity partners are paid entirely from the firm's profit.

The firm made a number of hires during the past year, kicking off in May 2008 when it acquired two-man corporate boutique Gordon & Co. In the same month it hired Halliwells corporate chief Julian Lewis to boost its M&A team.

The firm also lost some partners, with restructuring head Rupert Connell leaving for Barlow Lyde & Gilbert in June 2008, while real estate partner Nick Ellis joined Salans the following month.