Clydes took £23m loan to fund post-merger office move

Clyde & Co took a loan of £23.6m in the 2011/12 financial year to help fund the firm’s move to new offices in London.

Clydes building

According to Clydes’ LLP accounts the firm increased its banking facility from £15.4m in 2010/11 to £39m a year later. The firm’s overdraft facility also increased, from £4m to £7.2m, over the same period.

According to finance director Ian McAndrew part of the loan was agreed to fund the firm’s move to the St Botolph Building in the City in August 2011. The firm has agreed to repay the debt by April 2014 and plans to use the money it saves through a rent-free period to settle the debt.

The loan also includes a revolving debt agreement that is spread over three years to fund the growth of the firm. McAndrew said approximately half the credit agreement had been set aside as a property loan.

The accounts also show that the firm’s highest-earning partner for the year took home £1.27m, up 39 per cent from £913,616. It is more than double the firm’s average profit per equity partner (PEP), which, according to The Lawyer UK200, stood at £550,000 in 2011/12.

The firm’s move into Canada has proven successful following the merger with Nicholl Paskell-Mede, first revealed by The Lawyer in March 2011 (7 March 2011). For the period between 1 September 2011 and 30 April 2012 the Canada office generated a profit of £2.16m.

Clydes’ subsequent merger with BLG (6 June 2011) gave it a capital boost of £10m, with the amount of capital introduced to the firm increasing to £18m from £8.2m a year earlier.

The firm posted turnover of £285.8m at the last year-end, up 35 per cent from £211.4m a year earlier.