Shoosmiths sees profit drop but turnover rise after expansive year

Despite posting a rise in turnover, Shoosmiths has reported a drop in net profit and average profit per equity partner (PEP) for the 2012/13 financial year.

The firm has reported a 3.6 per cent rise in revenue, from £84m in 2011/12 to £87m at the end of the latest financial year.

Net profit was down 7 per cent from £12m in 2011/12 to £11.2m, while PEP fell by almost 9 per cent from £295,000 to £269,000.

Shoosmiths confirmed 71 voluntary and 15 compulsory redundancies following a consultation round affecting 93 roles towards the start of the financial year (24 July 2012).

Despite that, the firm made up six partners across its international network this year during what CEO Claire Rowe called a “tough economic climate” during which promotions must be “particularly hard won” (28 March 2013).

Shoosmiths merged with Edinburgh firm Archibald Campbell & Harley last summer. The bolt-on gave Shoosmiths its first office in Scotland and a boost in real estate, retail, litigation and recoveries for lenders. Archibald Campbell had 20 lawyers and 65 staff in total (21 June 2012).

At the beginning of this year Rowe told The Lawyer she thought that 2013 would be another difficult year for the legal market and that she expected to see see further consolidation among firms.

She said the firm would continue to strive for growth, in particular, by “looking to ensure that our new colleagues in Edinburgh are integrated into the business so we can grow and develop that location” (28 January 2013).