Kennedys

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):

35
UP

88.2
380
219.84
210-600
18.6
21
201.4
298.0
700.0
1,800.0
438
296
126
49
31
11
756
5.04

At the beginning of 2009-10 Kennedys senior partner Nick Thomas warned employees at the firm not to expect a bonus at the year-end.

However, after a second consecutive outstanding year in terms of revenue growth, that decision was ultimately reversed.

Kennedys, predominantly an insurance firm handling a mix of top-end liability work for a range of insurers, including Axa and RSA, posted a 31.1 per cent rise in total revenue, from £67.3m to £88.2m.

Net profit also grew last year, from £14m to £18.6m.

This follows a period of sustained investment at Kennedys, which began in the 2008-09 financial year with the addition of insurance boutique Davies Lavery, followed by the acquisition of Reynolds Porter Chamberlain’s Tiverton office.

That acquisitive trend continued in 2009-10. Kennedys acquired the bulk of Halliwells’ insurance team in Sheffield during the year to launch an office in the city.

Average profit per equity partner rose by 8.5 per cent, from £350,000 to £380,000. This also reflects a rise in revenue per partner of 21.7 per cent, from £575,000 to £700,000, generated by the firm’s 126 partners.

The equity spread moved upwards at both ends, from £175,000-£500,000 in 2008-09 to £210,000-£600,000 in 2009-10.

Kennedys’ equity ladder starts on 40 points, with five-point increments up to 60. Thereafter remuneration is decided on a case-by-case basis.

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):

43
UP

67.3
350
187.2
175 - 500
14
21
175
187
575
1,683
385
360
117
40
24
5
669
8

While other firms retrenched last year, Kennedys just grew and grew. Turnover was up 30 per cent from £51.5m to £67.3m, with around £7m-£8m organic growth.

Although the firm’s commoditised practice areas continue to perform well, it is the bigger-ticket insurance work that is over-performing, with large disputes such as the Nick Williams-led Buncefield standing out.

But turnover was also boosted by the addition of the bulk of insurance boutique Davies Lavery, with eight out of the firm’s 11 former partners coming over to Kennedys, four into the equity. That merger was followed in July by the takeover of Reynolds Porter Chamberlain’s Tiverton office and raids on DLA Piper’s Birmingham office.

Kennedys has also expanded internationally, hiring in Australia for its Sydney office from the former insurance litigation department of Minter Ellison (in June 2006) and targeting growth opportunities in the Middle East.

Kennedys’ equity starts at 40 points with five-point increments up to 60. There is then a gateway, although after 60 points is reached there is no formal top of the equity ladder. Around half of the firm’s equity partners were on more than 60 points last year. Fixed-share partners receive five equity points.