The Lawyer’s new China Elite report contains the most detailed research available on the PRC legal market and contains unparalleled insight into the country's leading law firms. They vary in size, practice focus and geographic coverage, but they all share one common quality – ambition... Read more
This year, The Lawyer’s annual ranking of the largest UK law firms by turnover is available as an interactive, digital benchmarking tool. For the first time this will allow you to manipulate each data set against the metrics of your choice.
Nabarro has reduced its staff costs by almost 10 per cent over the past financial year, largely as a result of it slimming down its total salary bill.
The firm reduced total staff costs by £4.4m over the 2009-10 financial year, £4m of which was attributable to a reduction in total salaries, according to LLP filings with Companies House.
The firm reduced total non-partner staff by 7 per cent over the same period from 835 to 781.
Some of the drop in headcount was the result of redundancies that followed a drop in profitability and turnover during the 2009-09 financial year.
In July 2009 The Lawyer revealed that the firm would be launching a consultation with 19 members of staff, including 10 associates (8 July 2009 http://www.thelawyer.com/nabarro-in-new-redundancy-round-as-pep-drops-35-per-cent/1001309.article). This followed 22 redundancies made during the 2008-09 financial year.
In addition to cutting staff costs, Nabarro has slashed its corporate hospitality and marketing budgets and adopted a cautious approach to international expansion. Together these moves mean it has maintained a relatively high profit margin for its mid-market peer group at about a third of turnover, despite a 10 per cent decline in total revenue to £114m.
The accounts also reveal the extent of the firm’s conservative financing policy. Nabarro, headed by managing partner Nicole Paradise, had just £1m of bank loans and overdrafts on 30 April 2009. It also had £9m cash at bank and in hand, a reduction of £1.6m on the previous financial year. The overdraft facility is due for renewal in January 2011.
The firm’s management was unavailable for comment.