Walker Morris

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):

=63
UP

42.6
535
325.1
190-700
16.6
39
165.1
264.6
835.3
1,374.2
258
161
51
31
10
3
481
4.19

By its own admission, Leeds-based Walker Morris had a disappointing year in 2008-09. Turnover fell by 8 per cent and average profit per equity partner (PEP) by 27 per cent to £486,000. Things were better in 2009-10. While turnover again dropped by 3.6 per cent to £42.6m, net profit leapt by 14 per cent to £16.6m and PEP increased from £486,000 to £535,000.

Corporate remains a key area, making up 22 per cent of turnover, but in fact the biggest fee-generating practice last year was litigation, accounting for 45 per cent of total revenue. Staff numbers fell from 524 to 481, although the majority of redundancies were among back-office staff, with the lawyer count remaining stable at 161.

There were other changes at Walker Morris since the 2009-10 year-end. In April veteran chairman Peter Smart stood down. This was followed by a restructuring of the management team when the firm installed Andrew Turnbull as non-executive chairman and Ian Gilbert as managing partner.

Now the firm has ambitions to step up investment in its 141-lawyer litigation team, a task illustrated by its June raid on Hammonds’ Leeds office for a head of commercial dispute resolution in the shape of David Williams.

So there may be change at the top, but do not expect any change in strategy. Gilbert remains firmly committed to the firm’s single-site policy. Having just the one office may mean Walker Morris misses out in some areas, but its formidable reputation in the North means it is never short of work.

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):

65
DOWN

44.2
486
301.9
180 - 650
14.6
33
155
275
850
1,473
286
161
52
30
10
3
524
4.37

Leeds firm Walker Morris saw a 27 per cent drop in average profit per equity partner (PEP) in 2008-09, from £670,000 to £486,000, while turnover fell 8 per cent from £48m to £44.2m.

The reduction in fee income saw Walker Morris slip from 59th to 65th place in the revenue rankings.

But the firm did better when it came to average profit per equity partner, ranking 24th, while it ranked 11th in terms of profit margin, with 33 per cent, or £14.6m.

Managing partner Peter Smart told The Lawyer: “While this reduction is disappointing we can’t defy gravity. It’s nonsense to believe that turnover and profits can rise inexorably year-on-year. We’re at least fortunate that we have above-average profitability and so even the reduced profit is reasonably healthy.”

The firm, long lauded for its quality national transactional practice, did see some growth in countercyclical practices such as litigation and restructuring, but as Smart admitted, not as much as expected.

“Clients have been desperate to conserve cash and have avoided litigating wherever possible,” Smart said. “Poor realisations have put a brake on the level of insolvencies.”