DAC Beachcroft has announced a 9.7 per cent drop in net profit from £31.7m to £28.6m for the 2013/14 financial year.
As a result DAC Beachcroft’s average profit per equity partner (PEP) fell by 7 per cent from £281,000 to £261,000 in 2013/14. It is the second consecutive year that PEP has fallen at the firm despite turnover rising.
In 2012/13 DAC Beachcroft announced revenues were up by 14 per cent from £164.8m but PEP was down 11 per cent from £321,000 to £284,000 (15 July 2013).
The firm also reported an average profit per LLP member of £263,000 for 2013/14, compared to £284,000 the previous year.
Despite the decline in profit, the firm’s revenue rose 6.1 per cent from £188.2m to £199.8m in 2013/14. This gives the firm a 14.3 per cent profit margin for the latest full financial year.
DAC Beachcroft managing partner Paul Murray said: “The reduction in reported total profit this year reflects some prudent accounting treatment and highlights the continuing pressure on our margins. We are managing the business to ensure those margins improve in what continues to be a challenging environment.”
DAC Beachcroft issued a £10m cash call to the firm’s LLP members and increased its rolling credit facility to £40m in a push toward its £200m revenue target for the last financial year (18 November 2013).
The firm also put 65 jobs into consultation earlier this year as well as announcing it would vacate its Fountain Street office in Manchester (2 June 2014).