Shoosmiths turns in stunning forty-seven per cent PEP hike” />National firm Shoosmiths has claimed its second year of stunning financial results, posting an increase in average profit per equity partner (PEP) of 47 per cent.
PEP has risen to £333,000 from £226,500 the previous year, while turnover rose 10 per cent to £60.2m.
The number of equity partners remained stable at 34, while total partners rose from 72 to 83.
The results follow an astonishing performance in 2003-04, when the firm reported a 67 per cent profit increase. In the last two years, profit at the firm has risen by 144 per cent, from 2002-03’s £136,000.
The legal expenses division, the firm’s volume business, is the largest single group in the firm, accounting for around a quarter of turnover, with the property group the second-largest practice. The corporate/ commercial practice, which the firm has been looking to grow in recent years, also saw an increase in turnover.
Chief executive Paul Stothard told The Lawyer: “In terms of profit, we’re starting to get to where we should always have been.”
Stothard, who was appointed to the post in May 2002, attributed the results to ongoing tight financial management, a series of client wins and strategic hires. Stothard, who is an accountant, was re-elected for a second three-year term in January.
The results continue the firm’s comeback from 2002-03, when investment in the Birmingham office saw profits slump by 30 per cent.
“We’ve focused on our internal processes and taken steps to improve under- performing areas, ensuring that we can convert revenue into profit more readily,” commented Stothard.