Shoosmiths' partner profits halved
Shoosmiths has recorded a 54 per cent drop in average profit per equity partner (PEP) for the 2008-09 financial year.
Andrew Tubbs
Shoosmiths has recorded a 54 per cent drop in average profit per equity partner (PEP) for the 2008-09 financial year.
The firm’s PEP last year was £150,000, down from £327,000.
Total revenue was also down, dropping by 4 per cent, from £103.4m to £99m.
In a statement chairman Andrew Tubbs highlighted the opening of a new office in Manchester in January as well as the firm’s recent redundancy programme as contributing factors to the results.
“Our profit was hit hard because we chose to put people before profit,” said Tubbs. “We delayed our restructuring programme for as long as possible last year, which means that the impact of these savings will start to take effect half way through this financial year.”
In total the firm made 25 fee earners as well as 44 support staff redundant during its restructuring programme earlier this year.
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Readers' comments (22)
Richard Spud | 8-Jul-2009 8:51 am
Shoosmiths have grown far too big for their boots - pun intended.
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Anonymous | 8-Jul-2009 9:25 am
Good God, Shoosmiths has a live one here!
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Anonymous | 8-Jul-2009 10:39 am
At no point in my post do I defend Shoosmiths' decision to defer or not compensate future trainees. I was merely make the point that your continous and belligerent posts about the matter are somewhat dull and monotonous.
For your own good.... move on!!!
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Anonymous | 8-Jul-2009 1:26 pm
To the current shoosmiths trainee posting dribble on here, just one question, how many trainees are being kept on this year at your firm? Maybe you are one of the very few, but it’s disturbing why you feel the need to post on here. Get a grip.
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Space Cash | 8-Jul-2009 5:02 pm
Maybe the trainees not kept on can alter their CV and pursue a new career as shoesmiths.
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anon | 8-Jul-2009 10:33 pm
I don't think the industry will forget the name of Tom Goff for some time to come. For all the wrong reasons of course.
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Anonymous | 9-Jul-2009 11:06 am
Opening in Manchester must be really draining their cash.
Doesn't look such a good decision now.
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Anonymous | 10-Jul-2009 8:47 am
The Manchester market will not be cracked on a shoestring! Fortune favours the brave but it is difficult to see a profit coming from their Manchester office in the next 3 years. As somebody capable of carrying work to a new firm, would I wish to join them? The answer is a resounding "no". It is high time that Managing Partners recognised that many decisions made internally have an impact externally. Should we blame their inept handling of the PR issues? Again, a resounding "no". Trying to spin positives out of negatives is folly and as at least one Managing Partner in Manchester has found out to his cost, the "truth will out". Treating people fairly and reasonably must be the starting point. Once you achieve that, much of the business looks after itself and people with genuine client followings will find you a much more attractive proposition.
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Anonymous | 10-Jul-2009 3:50 pm
RE: Anonymous | 7-Jul-2009 3:13 pm.
Is your post endorsed by Shoomith's HR department!? Otherwise one would expect that after the initial debacle Shoomiths would have had the sense to instruct their IT techies to put a firewall on any trainee's access to TheLawyer for fear of another 'Tom Goff MkII'. Obviously not the case...
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Anonymous | 10-Jul-2009 4:21 pm
What a wise move. I am a legal secretary (I was). When hard times hit the economy, staff is always first to be laid off. while the partners hardly ever feel the squinch. My suggestion is: keep the staff and strip the partners of their profits or give them the pink slip. Every firm should follow Shoosmiths' example.
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