Just last week Beachcroft senior partner Simon Hodson was jubilant about the firm’s 18 per cent rise in turnover at the half-year stage. He attributed the result to the firm’s recent investment and a demonstration of what converting to a limited-liability partnership can do.
Hodson said: “In the absence of walking into a brick wall, there’s no reason why that (growth) shouldn’t keep going.”
This week, Beachcroft announced a major restructuring, which will result in a load of redundancies. Funny how things change so quickly.
But seriously… with average profit per equity partner (PEP) languishing at just £270,000, the 25th largest firm in the UK had the lowest PEP of any firm in the top 50. (Ahem, Cobbetts aside.)
Drastic action was needed and has been taken. Beachcroft’s new management can be applauded for asserting itself when the previous regime would have stuck its head in the sand, but that’s just one facet of management.
Hodson says what he means and means what he says, but when making redundancies, a smidgeon of tact is generally a good idea.