Hugh James

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):

=80
DOWN

30.5
200
182.5
116-235
6.6
22
217.9
423.6
762.5
824.3
140
72
40
37
7
1
430
0.95

Cardiff-based Hugh James remains by far the largest law firm in Wales, but continues to struggle due to economic conditions.

Things last year were not as bad as in 2008-09, when the firm was forced to close its Merthyr Tydfil office and make 65 staff redundant. The Lawyer estimates that revenue dropped from £33m to £30.5m, while average profit per equity partner remained static at £200,000. The partnership reduced by eight in 2008-09, but again stayed stable in 2009-10.

The firm, which also has an office in London’s Canary Wharf, continues to benefit from its presence on a number of lucrative panels, including the Welsh Assembly and the Office for National Statistics. Another important client is the Welsh Rugby Union. The firm represented the organisation in its £15m revolving loan facility with Barclays Corporate.

Claimant litigation remains one of its key areas, particularly personal injury work, although the property and construction division remains sluggish. Earlier this year the firm lost its head of commercial litigation and insolvency Ian Herbert to Welsh rival Darwin Gray, but did bring in new head of banking and finance Dominic Marshall from Kingsley Napley.

The firm undertakes a high volume of work with the public sector, but this is likely to be reduced in the coming years with the onset of big public spending cuts in Wales.

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):

76
DOWN

33.0
200
175.0
116 - 235
6.6
20
165
413
825
1,000
200
80
40
33
7
1
450
1.42

Welsh stalwart Hugh James had a rocky 2008-09 financial year. Around 65 redundancies and the closure of an entire office in Merthyr Tydfil tells its own story.

The Lawyer estimates that turnover was down from to £37m to £33m and average profit per equity partner down by 30 per cent to £200,000.

Many of the firm’s problems were linked to the recession. The residential conveyancing practice was hit by the property slump, while its Welsh regional clients in general had a hard time.

But another factor was the decline of one of the firm’s major revenue stream over the past few years – acting for miners seeking compensation from the British Coal for injuries and illnesses caused by their work.

In the 2007-08 year, this area of work alone generated a staggering £24m, the third-highest amount earned by any law firm.

The personal injury practice remains a large part of the firm but will never again see the sort of profits generated by miners’ claims.

But Hugh James does have other practices to take up at least some of the slack: public sector and insurance work in particular should provide some relief.

The firm won a place on the new Welsh Assembly panel in February last year and acts on property and commercial, corporate finance and litigation work.