Optima Legal
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):
DOWN
27.6
119
37.38
119-119
0.48
2
67.2
600.0
1,725.0
6,900.0
411
46
16
4
9
0
608
10.5
Optima Legal entered The Lawyer’s UK 200 for the first time in 2008-09, with a turnover of £30m. Last year that figure dropped by 8 per cent to £27.6m. But that barely begins to tell the whole story of a turbulent year for the firm, during which it was investigated by the Solicitors Regulation Authority (SRA).
The firm is something of an oddity in The Lawyer’s list. Optima was established in 2006 after DLA Piper spun off its insurance operation. It was structured as a limited company rather than as a general partnership, meaning that its senior lawyers are directors rather than partners.
This meant it could easily absorb a series of acquisitions, with the financial support of outsourcing giant Capita.
However, at the end of 2009 the SRA told Optima that its relationship with Capita had become too close and it was effectively acting as an alternative business structure in breach of the rules governing the profession.
The firm was instructed to reorganise its framework and absorb back into its structure 234 staff who had previously been outsourced to Capita. Despite this the firm’s headcount has reduced by 100 to 608.
In terms of practice areas, Optima’s property practice has suffered as a result of the recession. In 2008-09 the property group accounted for 63 per cent of the £30m turnover, or £18.9m. By the end of 2009-10 property accounted for just 38 per cent of turnover, or £10.58m.
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):
NEW ENTRY
30.0
307
307.7
307 - 307
1.2
4
78
638
2,308
7,500
385
47
13
4
5
0
708
10.75
Optima Legal, the volume legal services provider that was spun out of DLA Piper in May 2006, generated £30m in fee income during the 2008-09 financial year.
The firm is something of an oddity in The Lawyer’s top 200 list. It is a limited company, meaning its senior lawyers are directors rather than partners. That said, Optima reports it has four equity partner-equivalents and a total of 13 directors, including this quartet. The average remuneration per director is £307,000.
In contrast with the tiny number of owners, the bulk legal services provider had more than 700 staff and almost 400 fee-earners last year, just 47 of whom were qualified lawyers.
Its clients include Barclays Trust, Bank of America, Bradford & Bingley and Morgan Stanley. Around 64 per cent of the practice is property-related and includes property conveyancing, debt recovery and finance among its specialisations.
Optima operates a modified lockstep remuneration system.
