The expansion of the equity partnership at HowardKennedyFSI has cut average profit per equity partner (PEP) at the combined firm by almost half to £128,092.
Howard Kennedy formally merged with Finers Stephens Innocent in January (31 January 2013) and as part of the integration of the firm salaried partners were invited to join the combined equity pool (25 March 2013).
At the 2011/12 year-end Howard Kennedy was home to just 13 equity partners in a total partnership of 57, while FSI had nine equity partners in its 35-strong partnership.
A year later the combined firm has 70.4 equity partners with a total partnership of 83.8, an increase of 220 per cent among the equity. PEP has fallen from an average £269,000 at legacy Howard Kennedy to £128,092 as a result.
“We made a concerted push to move people from being salaried partner to equity partners. It became our objective to bring people together,” said chief executive Mark Dembovsky.
The bottom of equity stands at just £60,000 compared with £194,000 at Howard Kennedy a year ago, while the top end has moved upwards by 10 per cent to £375,000 from £341,000. FSI did not disclose its profits for the 2011/12 year.
This year’s results are the first set of figures for the combined firm. Revenues, which have been released together for the full year, stand at £40.6m. HowardKennedyFSI did not split up turnover for the two legacy firms.
At the 2011/12 year end Howard Kennedy posted revenue of £27.8m, while FSI put turnover at £17.6m, giving a combined turnover of £45.4m for the 2011/12 year.
Dembovsky said the focus going forward was to integrate the two firms, which is spread across two London bases.
“The biggest thing we need to do is bring people physically together,” he said. “Over this weekend and last we will complete the process of moving 300 people around the firm. It is an enormous logistical process.”