DWF staff costs rose 12 per cent in 2009-10, LLPs reveal
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The increase in DWF’s staff costs in 2009-10 was disproportionate to the increase in the firm’s total headcount, LLP accounts filed with Companies House have revealed.
The North West firm saw its wage bill increase by 12 per cent from £28.7m to £32m over the financial year. At the same time the average number of total staff employed at the firm grew by seven per cent, from 844 to 899.
The average number of legal staff expanded over the period by almost 20 per cent, while the support staff figure fell by seven per cent.
The firm saw both turnover and average profit per equity partner increase. The former grew by a 20 per cent to £72m and the latter by almost a third to £333,000.
Managing partner Andrew Leaitherland pointed out that the firm used different methodologies between the 2009-09 and 2009-10 financial years to calculate total staff, that could explain the differences between rates of growth in pay and staff numbers.
“The year before last we included the year end figure for the number of people employed rather than the average through the year. This year we’ve done it the right way by putting the average in,” he commented.
DWF recently reported a 12 per cent increase in turnover for the first half of the 2010-11 financial year (10 November 2010).
Readers' comments (4)
Anonymous | 16-Nov-2010 9:57 pm
DWF may have posted an increase in turnover and profits, but it still has to repay £10.5 million in debt by January 2013. The fact that the accounts clearly state these borrowings under the "going concern" part of the accounts suggests that the auditors insisted on making the large debts explicit. Given that the partners' drawings were £14 million last year, this means that the partners would have to reinvest most of the surplus cash to repay these debts should the banks be reluctant to extend the debt faciltities in 2013.
It is also interesting to note that the member with the highest entitlement to profits saw their share increase from £386,000 in 2009 to £619,000 in 2010, an increase of 60 % compared to an increase in net profits of only 28%.
Given the very flash offices that DWF occupies, I wonder if they will be the next Halliwells?
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Anonymous | 17-Nov-2010 10:07 am
The DWF formula works.
Rumours abound that DWF will be merging (taking over) an under-performing Newcastle firm fairly shortly.
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Anonymous | 17-Nov-2010 4:19 pm
Staff costs rising? Better get out the redundancy monopoly board.
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Anonymous | 10-Dec-2010 6:22 pm
DWF are going places but there are many jealous people and firms around.Haliwells were stupid, DWF are Smart
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