Hill Dickinson

UK 200 RESULTS 2010

Hill Dickinson’s turnover grew by 6 per cent, or £5m, last year, around £3m of which came from its July 2009 merger with London commodities boutique Middleton Potts. The rest was attributable to growth in the insurance department, with double-digit expansion in the firm’s fledgling fraud and claimant practice.

However, profitability fell for the second year running. Compared with 2008-09, net profit dropped by 15 per cent and average profit per equity partner by 16 per cent as a result of

the decline in corporate and commercial property work, investment in a Manchester corporate practice targeting higher-end work that failed to get off the ground, as well as a net increase of 139 members of staff, including seven partners.

The firm reformed its three-tier partnership, replacing the salaried partner role with salaried member. Around a third of all partners are equity. They enter on 28 points and plateau at 70 points. A review committee chaired by managing partner Peter Jackson, and including four elected partners, can allocate any number of points to partners within those parameters.

Fixed-share members comprise around another third of the partnership. They contribute capital, have a fixed profit share and some voting rights on strategic matters. Salaried members contribute less capital, have a smaller profit share and limited voting rights. For example, they attended the meeting on the acquisition of 127 members of staff from Halliwells, but did not have a vote.

Both fixed-share and salaried members are eligible for a bonus based on performance indicators accounting for between 10 and 20 per cent of total salary.

The Liverpool-headquartered firm spent part of summer 2010 in negotiations with partners at Halliwells to take on the entirety of the firm. In July a deal was struck that saw it take the firm’s Liverpool office, part of Sheffield and a handful of lawyers in Manchester.

Hill Dickinson has raised its forecasted budget for 2010-11 from £97m to £105m as a result of the acquisition.

UK 200 RESULTS 2009

Hill Dickinson posted fee-income of £82m for the 2008-09 financial year, an increase of 12 per cent on the previous year’s £73.1m – a fact that helped the firm ascend the ranks of the UK 200 to 39th place.

The strongest growth was in the employment, insurance and professional risk practices, which grew by 39 per cent, 16 per cent and 13 per cent respectively. However, the key property practice experienced a dip in income.

At the same time, Hill Dickinson reported a drop in average profit per equity partner. The 51 equity partners (35 per cent of the partnership) made on average £294,000 – 6 per cent less than during the previous year.

The firm recently announced its plans to restructure the partnership as part of changes to become effective by 30 April 2010. It currently has salaried partner, fixed-share equity and equity partner roles but will replace salaried partnership with salaried membership.

Unlike salaried partners, salaried members will have voting rights, put capital into the business and share in the profit of the firm. Not all salaried partners will become salaried members as the firm is also creating the new position of legal director.

Investments last year included the launch of a Singapore office run by partner Tony Goldsmith, specialising in shipping work. The firm also merged with London commodities practice Middleton Potts at the start of the current financial year.