Irwin Mitchell posts solid 2010-11 results in run up to LSA

Irwin Mitchell has posted 9 per cent rise in turnover for the 2010-11 financial year, up from £157m to £171m.

It has been a year of expansion for the firm, which is aiming to be the first to effect changes allowed under the Legal Services Act.

The firm’s partnership base has expanded by 21, from 115 at the 2009-10 year end to 136. This included the addition of a four-partner real estate team led by Jon Vivian, who made the shock move from SJ Berwin to Irwin Mitchell in September 2010, taking with him a 12-lawyer team (27 September 2010).

The expansion of the equity partner base from 52 to 59 has impacted average profit per equity partner (PEP), which fell 5 per cent in 2010-11, down from £540,000 to £511,000.

That said, net profit was up 7.5 per cent, from £28.1m in 2009-10 to £30.2m, giving a profit margin of 18 per cent. This is the same margin as the firm recorded the previous year.

Meanwhile, growth has stalled at Beachcroft, with the firm posting a 2 per cent rise in turnover from £131m to £134m. During the previous financial year the firm’s turnover grew by 8 per cent, up from £121, to £131m.

Net profit grew marginally in 2010-11, up 2 per cent from £25m to £25.4m, with average PEP up 8 per cent from £314,000 to £338,000.

The firm’s top-earning equity partners saw their profit share rise to a new high, with plateau partners taking home £624,000. This represents a 17 per cent increase on th previous year, when the top-of-equity figure stood at £535,000.

The profit share for those at the bottom of the equity also increased, up from £215,000 to £229,000.