Gordons’ acquisitions and equity curb push PEP through £500K barrier

YORKSHIRE law firm Gordons saw its average profit per equity partner (PEP) figure break the £500,000 barrier in the past financial year after it rose by 20 per cent to £547,000.

This robust figure can largely be put down to the firm making a number of acquisitions in the past five years without significantly increasing its equity partnership.

Managing partner Paul Ayre said the firm’s most recent acquisition was Bradford-based David Yablon Solicitors, which added £2m a year in revenue.

However, the equity headcount has remained static at 15 following the acquisition, meaning the increased turnover should translate to an even greater increase in PEP for the current financial year.

During the 2006-07 year the firm’s turnover grew by 7.47 per cent to £18.7m, while PEP rose by 20 per cent, from £456,000 to £547,000. Total net profit at the end of the financial year stood at £8.2m.

Total remuneration to all classes of partner came to £9.5m over the past year, with all staff outside the equity receiving a bonus. The total value of the bonus was £328,000, the equivalent of 4 per cent of net profit.