West End firm Fladgate’s financial results have confirmed the dearth of commercial property deals over the past financial year.
Average profit per equity partner (PEP) fell to £390,000, a 37 per cent drop from £618,000 in 2007-08, while top of equity dropped by 38.5 per cent, from £976,000 to £600,000.
Turnover was also down at the 45-partner firm, dropping by 12.5 per cent, from £27.1m to £23.7m.
The challenges faced by Fladgate last year were reflected in the revenue generated by its core practice areas. Real estate provided just 34 per cent of revenue, while corporate contributed 42 per cent. In previous years the two practice areas generated broadly equal levels of revenue.
Chairman Paul Leese said it was to be expected that, given the growth in the firm’s profit levels in recent years, the downturn in its core transactional practices would have an effect on turnover and profit.
“We feel a PEP of £390,000 for the last year is a satisfactory outcome,” Leese insisted.