Simmons' turnover falls during first half of 2010-11
Simmons & Simmons has posted a three per cent drop in income for the first six months of the 2010-11 financial year.
Mark Dawkins
The firm brought in £117.7m over the period, down from just over £120m for the comparable period last year (9 November 2009).
At the same time Simmons reported a 27 per cent rise in profit for the period through a combination of cost-saving measures.
Managing partner Mark Dawkins said: ”The small reduction in income can be attributed to a range of factors. These include a shrinkage of areas that are outside our strategic focus, such as the closing of the Padua office, and difficult business conditions, especially in Western Europe where transactional practices have been affected by Eurozone uncertainty.
”Our business is, however, aiming for growth and there are encouraging signs. Most notably, growth in our core sector client programmes during this period is running at 16 per cent,” he added.
Readers' comments (1)
Anonymous | 28-Nov-2010 9:17 am
Whilst cost saving initiatives has been achieved and profits have risen, profits will not grow unless turnover grows. This is because there will always be a spread between turnover and profits, occupied by costs.
Even if profits increased at 27% as claimed, at best, one could imagine half yearly profits could be £80m and for a Top 15 firm employing 1,500 personnel, is that sustainable?
In the last 3 years, Simmons' half year profits have dropped from £143m to £120m and now to £118m. So it's obvious its business opportunities are shrinking and for a Top 15 firm, it can't afford this and the excuse that times are tough, can only carry on for so long when its competitors are obviously doing better, and growing.
Business development will prove crucial at this point and pressure will be on that department (especially its head) to produce new opportunities and/or stimulate more billings from existing relationships.
Remember the Madonna flick Desperately Seeking Susan? Maybe it’s now Desperately Seeking Simmons...seeking new business? A merger? Or both!
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