GTM blames first-year loss of £3.3m on start-up costs
Greenberg Traurig Maher (GTM) London chief Paul Maher is remaining bullish about the merged firm’s fortunes after its LLP accounts revealed that it had made a loss of more than £3m during its first 10 months in the capital.
Paul Maher
The City arm of US firm Greenberg Traurig showed a turnover between 1 June 2009 and 31 March 2010 of £3.5m, but after £7.1m in costs, which included setting up its London base, the firm ended the financial year with a loss of £3.3m.
The amount owing to creditors, which included accruals over the next 12 months, stood at £2.3m. The amount due to the US parent firm was £1.4m, although no interest was charged on this and there are no fixed payment terms.
Maher said the figures were based on the start-up period for the office, when it was rapidly hiring staff and setting up new premises, and did not reflect its position almost two years on.
“LLP figures are always a bit misleading and we had a lot of start-up costs, but overall our first calendar year period was pretty respectable,” he added.
While Maher declined to offer any hints as to actual figures for the 2010 calendar year and first quarter of 2011, he claimed they would place GTM in the top 30 US firms in London, a milestone that would require a revenue of at least $26m (£15.71m).
“We’re well over budget and, on the M&A side, have some big transactions going on,” he said.
GTM embarked on a hiring spree shortly after it launched. It brought in the likes of White & Case capital markets partners Andrew Croxford, Andrew Caunt and Tim Jeveons, as well as Paul Hastings London vice-chairman Justin Hamer.
Partners were also hired from Eversheds, Kirkland & Ellis, SJ Berwin and Watson Farley & Williams.
GTM has entered into a lease on premises at 200 Gray’s Inn Road, paying £542,000 a year.
