McGrigors
UK 200 RESULTS 2010
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):
UP
69
263
214.66
160-417
14.5
21
152.9
189.2
722.5
1,250.0
451
365
96
55
19
12
746
5.61
McGrigors, which has a September year-end, had a better year in 2009-10, with the firm’s revenue rising by 10 per cent to £69m and net profit up by 11 per cent to £14.5m.
The bulk of the turnover boost was down to the firm’s October 2009 merger with Belfast firm L’Estrange & Brett. The merger increased McGrigors’ size significantly in Northern Ireland, taking it from around 10 people to more than 100, 10 of whom are partners.
The firm also bulked up in Manchester, hiring a three-partner construction and engineering team from Hammonds consisting of David Moss, Paul Giles and Richard Anderson.
However, as that team only joined in August 2010 it will have had little impact on the top line.
The series of investments has affected the level of profit that makes it into partners’ pockets.
Average profit per equity partner slid by 6 per cent, from £280,000 to £263,000. Top of equity also fell, from £450,000 to £417,000, although the bottom remained unchanged at £160,000.
The firm calculates partner profits on a merit-based system, with a four-person remuneration committee assessing partners after the September year-end. Points are awarded on a balanced scorecard system up to a maximum of 60.
Partners also receive a notional salary based on seniority and market position.
UK 200 RESULTS 2009
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):
DOWN
63.0
280
216.9
160 - 450
13.1
21
165
187
759
1,340
382
337
83
47
20
12
781
6.17
McGrigors managing partner Richard Masters admitted there had never been a tougher year than 2008-09. In that context, the turnover of £63m and average profit per equity partner (PEP) of £280,000 was a decent achievement.
Masters also admitted that in the current environment, McGrigors’ goal of becoming a £100m firm within two years via organic growth alone was going to be challenging at the least.
Instead the firm is sticking with its strategy of growing via appropriate acquisitions. The flipside of the current environment is that it creates a market that is likely to deliver more of those acquisitions.
McGrigors’ varied practice mix shielded it to an extent from the worst impact of the downturn. While real estate and corporate suffered, tax and litigation remained busy.
McGrigors’ energy group, which covers every aspect of the sector from upstream oil and gas to renewables, was also very busy, while the restructuring and insolvency have come to the fore after a spate of lateral hires.
McGrigors' equity partners are primarily remunerated on a merit basis, a system introduced at the start of the financial year. Each partner has a notional salary based on seniority and market position, then the profit is distributed retrospectively after year-end. There is no lockstep.
Partners are awarded points on a balanced scorecard system after the September year-end, where the maximum is 60 points and the minumum is zero. It is thought unlikely there will be any partners on 60 points for the 2008-09 year.
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