| Turnover | £125m |
| Profit per equity partner | £500,000 |
| Earnings per partner |
£351,000 |
| Equity spread | £254,000-£740,000 |
| Net profit |
£41m |
| Profit margin |
32 per cent |
| Revenue per lawyer | £306,000 |
| Revenue per partner | £919,000 |
| Revenue per equity partner |
£1.54m |
| Total number of fee-earners |
505 |
| Total number of assistants |
273 |
| Total Number of partners |
136 |
| Total Number of equity partners |
81 |
| Total number of female partners |
15 |
| Total number of female equity partners |
6 |
| Total number of staff |
1,029 |
| Leverage ratio (equity partners/fee-earners) |
1:4.0 |
| Representative clients | Ace European Group,
BP,
Glencore,
Group 4 Securicor,
Institute of London Underwriters,
Legal & General
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*BUY |
It was an unusually expansive year for Clyde & Co, which kept average PEP static at £500,000 despite a hike in global turnover of 20 per cent.
PEP was diluted by the June 2005 merger with aviation boutique Beaumont & Son, which saw 11 partners join Clydes' equity partnership. Beaumonts' PEP for the previous year was just £280,000. Next year, however, figures for the firm's new Shanghai, Moscow and US offices will come into the mix, as will revenue from the significant number of other lateral hires that Clydes made during the year.
The US launch was the result of the 18 months of research. The firm raided US firm Condon & Forsyth for four aviation partners, which resulted in the launch of offices in New York and Los Angeles. The 2005 Beaumonts merger added the aviation strength, which made the launch possible.
Top of equity did edge up, from £724,000 to £740,000. While Clydes' lockstep is essentially pure, there is a performance-related element of 5 per cent, which allowed for a slight increase at the top end this year. The bonus element aside, equity partners join a 10-step lockstep that begins with 46 profit-sharing units and ends with 100. Clydes' 55 salaried partners earn an average of £130,000, making the total compensation pot for all partners £47.65m.
Capital contribution is low at £140,000 per equity partner, and the firm uses its bank facility sparingly. Clydes holds any revaluation of WIP within the firm rather than distributing it to partners, thereby reducing reliance on debt. Lockup is steadily improving and the firm is working on further improvements for the future.
The firm's UK operations are more profitable than its overseas offices. The margin in the UK is 35.1 per cent, while the global figure is 32.4 per cent. Clydes' main international source of work is the United Arab Emirates, which produces 7 per cent of total income.
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