Holman increases profit as PEP stalls

Holman Fenwick & Willan’s net profit has grown by more than 20 per cent for the second year in a row, but growth in average profit per equity partner (PEP) has slowed.

The firm’s profit has rocketed up by 23 per cent, following a massive 30 per cent jump at the end of the last financial year. Holman’s PEP, however, inched up by 7 per cent to £436,000, from £409,000 in 2006. Turnover went up by 11 per cent, from £61.6m to £68.3m.

Managing partner Greg Gray said that PEP did not increase in line with the net profit increase due to several lateral hires, including “one or two equity partners”, not contributing to growth, as they joined Holman at the start of the new financial year.

Holman’s overseas offices have performed well, with the firm’s Chinese practice bringing in the most revenue of Holman’s overseas jurisdictions, with 10 per cent of the total.

Holman’s newest international offices Dubai and Melbourne, which are now a year old, contributed to the firm’s revenue for the first time, with 3 per cent each.

Gray said: “We had a goal to ensure that we consolidate our position after the previous year’s investments and have exceeded the cautious expectations that we had made at the beginning of the financial year.”

Gray said that next year he expects the firm’s profit growth will again be healthy as the new partners’ contributions to revenue should be significant.