Trowers & Hamlins
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
89.4
553
285.45
437-583
14.4
16
237.8
285.6
812.7
3,438.5
376
313
110
26
31
6
653
11.04
For a firm that puts a lot of store in its property practice – it makes up 36 per cent of global revenue and almost half of UK income – Trowers & Hamlins had a surprisingly strong year.
While it did not quite match the growth seen in 2008-09, when revenue rose by 15.3 per cent, a flat turnover of £89.4m was more than many of its competitors could achieve. And after seeing net profit plunge in 2008-09, in 2009-10 the firm reported a 21 per cent bounce-back to £14.4m plus a 9 per cent increase in average profit per equity partner, from £509,000 to £553,000.
The overall staff count was down from 694 to 653, with the firm making around 28 redundancies since autumn 2007, although lawyer numbers remained stable. And in the past year Trowers was busy in the recruitment market, with 10 partner hires.
The hires include Manchester-based commercial property partner Paula Hamer from Pannone, housing finance partner Anna Clark from Winckworth Sherwood and international projects partner Stewart Simpson from Simmons & Simmons.
Earlier this year the firm opened its second office in Saudi Arabia, with the Jeddah practice launched in association with Feras Al Shawaf Law Firm. Trowers also made several key hires in the Middle East, where it now has seven offices, and made up Islamic finance specialist Jeremy Ingham in Bahrain. Income from the region now accounts for a quarter of Trowers’ turnover.
Globally, corporate is Trowers’ biggest revenue generator, accounting for 42 per cent of the total, while in the UK property is the biggest source of revenue.
The firm has landed roles on numerous high-end property deals, including representing pub group Daniel Thwaites on its £77.5m sale of The Stafford Hotel. Among the firm’s key clients are the Crown Estate, Arcapita, the Homes and Communities Agency and Lagan Construction.
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):
UP
89.5
509
248.6
399 - 532
11.9
13
230
280
821
3,580
389
320
109
25
26
6
694
11.8
Trowers & Hamlins’ global turnover jumped by an impressive 15.3 per cent during 2008-09, from £77.6m to £89.5m.
However, only 7 per cent of this was real growth. The remaining 8.3 per cent was a consequence of the weak pound as Trowers overseas offices’ income and costs are expressed in US dollars.
The corporate and property departments accounted for the bulk of Trowers’ fee income, with the former contributing 44 per cent and the latter 36 per cent of global revenue.
The firm’s net profit plunged by 11.2 per cent, from £13m to £11.9m. But average profit per equity partner (PEP) remained almost unchanged at £509,000. Partners at the top of equity pocketed £532,000 and those at the bottom £399,000.
The firm attributed to drop in profit primarily to lower activity levels in the second half of the financial year.
Trowers went through three rounds of redundancy consultations in recent months, but only around 10 positions were lost during the past financial year, including five in Dubai, one in Muscat and one in Riyadh.
Trowers operates a modified lockstep. Junior equity partners have no voting rights but do share in the profit. The net profit figure, however, excludes the profit distributed to junior equity partners. Final profits were distributed to partners six months after the end of the previous financial year.
The firm’s client list includes Abu Dhabi Ports Company, Aegon UK, East Thames Housing Group, First Base, the London Borough of Newham and Orchid Group.
