Pannone

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):

56
DOWN

49.5
229
151.46
154-403
7.8
16
137.9
232.4
480.6
1,455.9
359
213
103
34
43
11
701
5.26

Manchester-based Pannone embarked on a major cost-cutting exercise last year with 40 redundancies. Total headcount was down by 7 per cent on the previous year, while partner headcount fell by 13 per cent.

The firm is one of the few of its size to maintain a private client department, one of its strongest billing areas last year alongside high-value personal injury and clinical negligence. It is also seeking to develop its public sector client base, having recently won a Homes and Communities Agency panel place. Nevertheless, exposure in the commercial and property sectors left total turnover down 5 per cent at £49.5m.

There was change at the top, with managing partner Steven Grant stepping down before the end of his three-year term and handing over to clinical negligence department head Emma Holt. At the same time Grant’s predecessor Joy Kingsley, who had held the position of senior partner since January 2008, announced her departure to smaller rival JMW Solicitors.

Pannone has three classes of partner – salaried, fixed-share and full equity. Equity partners enter a five-rung lockstep on 50 points and plateau at 100 points. A further 10 points are available to plateau partners for exceptional performance. There is also a bonus awarded on a discretionary basis. Pannone has made slight changes to the traditional lockstep, which means partners can have their progression halted at a particular point.

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):

55
UP

52.5
228
132.8
137 - 245
8.8
17
139
238
441
1,346
378
221
119
39
46
11
752
4.67

Manchester firm Pannone's turnover grew slightly in the past financial year, with the firm bringing in £52.5m, a 3 per cent increase on the £50.8m for 2007-08.

This was assisted by its well-established countercyclical practices. Pannone has a strong reputation in family, private client and clinical negligence. Indeed, litigation accounts for almost half of the business. In contrast, corporate and finance only make up about 11 per cent of total turnover combined.

The firm’s profit margin dropped from 27 per cent last year to 22 per cent this time round. As a result, average profit per equity partner fell by 21 per cent, from £290,000 in 2007-08 to £228,000 in 2008-09.

Partners at the bottom of the firm’s equity pocketed £137,000, while those at the top of the equity received £245,000.

The number of partners at the firm increased from 110 to 119 over the year, with four being promoted to the partnership this year.

The total number of staff stood at 752, 26 fewer than at the previous year-end. Pannone made a number of redundancies last year, with the residential conveyancing department being particularly hard hit.

NEWS

Pannone promotes seven to new junior equity role

14-May-2012 | By James Swift

Pannone has shaken up its partnership model and made up seven lawyers to the new role of junior equity partner but none to full partner, in its annual round of promotions.