Profit per equity partner: £240,000
Equity spread: £128,000-£320,000
Net profit: £6.5m
Profit margin: 25 per cent
Salaried partner remuneration: £60,000-£200,000
Revenue per lawyer: £250,000
Revenue per partner: £520,000
Revenue per equity partner: £981,000
Cost per lawyer: £189,000
Profit per lawyer: £61,000
No of partners: 51
No of equity partners: 27
No of female partners: 12
No of female equity partners: Four
Total no of fee-earners (including consultants, paralegals etc): 125
Total no of fee-earners (excluding consultants, paralegals etc): 106
Total no of staff: 260
Leverage ratio: 1:2.04
Equity partner to staff ratio: 1:5
Fee-earner to staff ratio: 1:1.08
Financial management: The lockup target is 105 days (WIP 60, debtor days 45), achieved 118 at year-end (average WIP 25 days, average debtor days 93). The debtor days were particularly high last year due to a one-off billing matter, which has now been resolved. Partners’ fixed capital contributions are £117,000.
Equity structure: The firm operates a modified lockstep with partners entering the equity on five points and gaining 1,000 shares a year, rising to 13 points. There is a bonus pot of 5.5 per cent of the firm’s profit. The remuneration committee can adjust partners pay downwards by 15 per cent if they are not performing. Any more than that needs partner approval.
Billable hours targets: Assistants 1,500, partners 1,200 and 1,300.
Key clients: Blue Circle Industries, Dunbar Bank, Eurodis Electron, Henderson Global Investors, The Heron Group.