Farrer & Co

Farrer & Co had a solid year in 2011–12 during which turnover grew by just over 6 per cent to £49.6m.

The firm hit the headlines in 2011 when it was replaced by Olswang as official adviser on all phone-hacking claims made against defunct tabloid News of the World, one of the highest-profile matters of 2011–12.

Nevertheless the key financial metrics looked to be travelling in the right direction over this period. Average profit per equity partner (PEP), standing at £415,000, reflected a rise of 3 per cent from 2010–11’s £403,000 with no change in the number of equity partners. Earnings per partner stood at £269,000, which like PEP was up from 2010–11.

The net profit of £10.4m equates to a profit margin of 21 per cent, slightly down on the previous year. A further £800,000 profit share was divided up among junior equity partners in addition to their fixed-share salaries.

The relatively low profit margin was accounted for by the firm as the result of considerable investment over the past few years in Farrers’ buildings and systems. The firm has refurbished its premises, both its old building and a new property, and has also invested in IT systems.

In January 2013 Farrers launched a redundancy consultation, with 12 staff, including one fee-earner, facing the axe.