Mills & Reeve reported a two per cent increase in its 2012/13 turnover from £69.4m in 2011/12 to £70.9m, with its net profit up by four per cent from £19.5m to £20.4m.
While turnover and net profit have grown slightly, average profit per equity partner (PEP) in 2012/13 stood relatively static with a £2,000 drop from £326,000 in the previous year to £326,000. The static PEP figure is mainly due to a number of internal promotions that pushed up the firm’s equity partner ranks from 60 to 63.
Mills & Reeve’s equity spread last year also remained largely unchanged compared with 2011/12, with the highest earning partner taking home £369,000, just £2,000 less than the previous year’s top equity. The bottom of equity was on a par with last year at £252,000.
Although the firm-wide turnover remained steady, the London office, a six partner base, saw a 14 per cent drop in revenues from £5.8m in 2011/12 to £5.1m.
Mills & Reeve managing partner Guy Hinchley said the decline was a result of moving more work generated by the London insurance practice to it’s Norwich-based paralegal support centre, which was set up in August 2012 and currently consists of eight paralegals (1 Auguest 2012).
“It’s has been a good year for us but not a spectacular one,” says Hinchley. “We’ve achieved a two per cent organic growth, and managed to keep our margin healthy and stead. We’ve weathered the new normal of recession relatively well compared to many of our cohorts.”
“We expect to see a spectacular growth this year following our merger with George Davies with the enlarged firm’s turnover anticipated to increase by 10 per cent,” Hinchley added.
Mills & Reeve’s merger with Manchester’s George Davies took effect on 1 June 2013 (24 April 2013), boosting the firm’s national presence to 870 staff, including 112 partners. The combined revenueat the start of the year was put at £77m.