Penningtons

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):

91
DOWN

22.3
185
137.5
130-220
4
18
165.2
227.6
464.6
1,013.6
135
98
48
22
13
2
244
3.45

After declining to supply figures for the 2008-09 financial year, Penningtons decided to play ball again by issuing a full breakdown of its performance for the past financial year.

At £22.3m the firm’s turnover was 22 per cent lower than in 2007-08, but its average profit per equity partner saw a marked improvement of 19 per cent. The 22 equity partners took home on average £185,000, but then again the firm also had four fewer equity partners than it did two years ago.

The three-office firm, with a base in the City and outposts in Basingstoke and Godalming, retains a strong presence in private client work, which accounts for 37 per cent of total income but is carried out by 30 per cent of the partners.

Penningtons also has a sizeable property department, but its business services group dominates the firm both in terms of overall partner numbers and income generation.

The firm embarked on something of an expansion drive last year, picking up lateral hires in its banking, corporate, property and family departments. It also broke new ground by responding to changes to the rules governing partnerships by becoming one of the first to promote a barrister into the partnership.

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):

89=
DOWN

22.5
85
92.2
52 - 103
2.2
10
167
221
441
865
135
102
51
26
15
2
278
2.92

It’s been a difficult year for many West End firms reliant on the commercial property market and, according to numerous accounts, Penningtons’ experience has been no different.

The Lawyer estimates that the firm saw revenue fall around 21 per cent to £22.5m.

In a bid to rescue falling profitability, Penningtons is understood to have targeted 50 job cuts. However, this failed to make a significant impact, with sources estimating average profit per equity partner dropped to £85,000 for 2008-09 and the margin to 10 per cent compared with 14 per cent in 2007-08.

Penningtons has considerable fixed overheads for its size, with offices in London, Basingstoke and Godalming and a total of 102 lawyers. Half of this group are partners while a quarter are members of the equity.

NEWS

Penningtons reports bumper turnover growth after mergers

24-Apr-2012 | By Lucy Burton

South-East firm Penningtons has announced a revenue increase of 35 per cent for the 2011-12 financial year on the back of its double merger with Dawsons and Wedlake Saint.