Salans posted a 21.6 per cent increase in profit between 2011 and 2010, the firm’s LLP accounts have revealed.
Although Salans’ managing partner Dariusz Oleszczuk predicted profits would be flat in 2011 (5 March 2012) the accounts, filed last week with Companies House, show that net profit rose from €51.4m (£41.1m) in 2010 to €62.5m last year.
The highest-paid partner last year received €1.4m, up from €1.2m in 2010. At the end of the year Salans had 189 partners, up from 175 in December 2010.
The profit increase was largely due to turnover rising and costs remaining flat. The difference between the preliminary results announced in March and the audited accounts is due to the fact that the preliminary figures are on a cash basis, whilst the final accounts are on an accruals basis.
Salans reported a revenue increase of 4 per cent, from €208m in 2010 to €216.4m last year. Meanwhile operating costs dropped from €155.4m in 2010 to €154.7m, largely due to a reduction in staff costs.
Although the firm employed 31 more people in 2011 than the previous year, salary costs dropped by some 9 per cent, to €57.9m from €63.6m. Social security costs rose by €1.5m, making total staff costs €4.1m lower than in 2010.
Other operating charges rose by €4m and depreciation accounted for €3.4m in 2011.
The accounts also reveal that Salans has a short-term revolving credit loan facility, taken out on 30 June 2011 and renewed on 30 June 2012 for two years. This appears in the accounts as a €12.5m bank loan due within a year.
The document does not take into account the costs of closing the Hong Kong office (4 May 2012), although the accounts note that: “On 13th April 2012, effective from 31st December 2011, Salans LLP disposed of the Hong Kong office.”
In 2010 the costs of closing the firm’s Bromley office amounted to €3.3m.