Simmons & Simmons has set itself an ambitious target for further growth in profits after confirming a final profit per equity partner (PEP) hike of 40 per cent last year.
Managing partner Mark Dawkins revealed that the firm was targeting average PEP of £450,000 for the current financial year, after beating its already confident predictions for financial performance for last year.
Final calculations for the 2004-05 financial year revealed that Simmons’ PEP reached £385,000, up from £275,000 in 2003-04.
This was a bigger increase than anticipated. The firm’s projected figure of £371,000 was announced in May, although Dawkins hadhoped that adjustments for final billings would push this figure past the target of £400,000, set by the firm early last year.
The promising results represent an astonishing turnaround for Simmons, ending four years of woeful results.
Dawkins attributed this turnaround to the restructuring undertaken by the firm in the past 12 months, which included the de-equitisation of partners, combined with the improving UK legal market.
Top of equity rose 40 per cent to £600,000 last financial year, up from £430,000 in 2003-04, while net profit was up a similar 36.5 per cent to £56m.
Turnover also increased 10 per cent to £196m, compared with £178m the previous year, and revenue per equity partner reached £1.3m, up from £1.2m.
|Simmons’ financial figures|
|Profit per equity partner||£385,000||£275,000||40|
|Top of equity||£600,000||£430,000||40|
|Revenue per equity partner||£1.3m||£1.2m||8|
|Source: The Lawyer|