Travers Smith
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
72
705
534.92
375-1000
30.3
42
282.4
358.2
1,142.9
1,674.4
255
201
63
43
6
4
384
3.67
Travers Smith’s singular practice mix – a combination of mid-tier M&A and private equity – meant it suffered at least as much as any of its rivals during the downturn, making last year’s bounce all the more welcome.
The revenue drop of 21 per cent in 2008-09 was followed by an 11.6 per cent upswing to £72m in 2009-10. Average profit per equity partner increased from 2008-09’s nadir of £460,000 to £705,000, a 53 per cent jump.
In hindsight, incoming managing partner Andrew Lilley may have picked the perfect time to start in his new role. The firm’s private equity team hit a relative purple patch early in the year as some of its stalwart clients, most notably Bridgepoint, emerged from their recessionary hibernation.
However, a certain amount of hedging has also steadied the ship. The firm has introduced a cross-departmental group aimed at cross-selling services to its corporate client base.
Travers’ new financial services litigation team, while still small, began to pull its weight last year. Meanwhile, the four-partner employment department has grown to become a self-standing practice, with two-thirds of its work now self-generated.
Costs are still being monitored closely, although the firm navigated the recession without any major redundancy programme.
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
64.5
460
381.0
235 - 700
21
33
261
267
1,024
1,402
247
242
63
46
7
6
460
4.26
In the two years since the credit crunch began, Travers Smith – effectively a corporate boutique heavily reliant on M&A and private equity for its income – has struggled more than most.
Travers’ financial figures for 2008-09, though expected, were still startling. A drop in turnover of 21 per cent was one of the largest falls in the top 100, while its profit per equity partner of £460,000 has nearly halved since the halcyon days of the M&A boom.
Incoming managing partner Andrew Lilley has a tough job on his hands. To counter the decline, the firm has made a handful of redundancies and strengthened its other practices.
Tax, pensions, litigation and employment have all remained steady compared with the previous year, while income from the core transactional practice dropped by a third.
This fact was reflected in the 2008-09 promotions round, which saw new partners in pensions, litigation, corporate recovery and employment but no M&A specialists.
But Travers remains a quality outfit with quality clients and is sure to benefit when the private equity industry comes back to life.
In the meantime, Lilley has made clear that he will not alter the firm’s strategy of managing costs and waiting for economic recovery.
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