DAC Beachcroft has announced a rise in turnover of 2 per cent, six months into the 2015/16 financial year, with revenue increasing from £98.8m to £100.8m.
The results reflect a similar increase in turnover over the full 2014/15 financial year when revenue increased 3 per cent, from £194m to £200m.
The unaudited results are the first to be released since DAC’s partnership elected its new management team in July. The elections saw incumbent managing partner Paul Murray and senior partner Simon Hodson replaced by David Pollitt and Virginia Clegg respectively.
Pollitt said: “I’m pleased with this good result at the half-year stage, which bears testament to the continuing hard work of all our people. Our drive for improved profitability is also showing results as is our focus on good business discipline, with lock-up improving significantly and overall net debt falling substantially by £4.7m, or 17 per cent, year-on-year.”
Speaking to The Lawyer Pollitt also said that reducing cash collection time was a major priority for the firm and that every day the firm reduced its lockup resulted in an extra £500,000 available in the bank. Over the last year DAC has reduced lockup by 21 days.
In order to decrease lockup days the firm introduced reducing cash collection times as one of its key performance indicators for partners 18 months ago. As DAC operates a fully merit-based remuneration system reducing lockup days now impacts the total take home pay of each partner.
DAC recently opened an office in Miami to complement its existing offices in Latin America. Miami is becoming increasingly important for law firms who are wishing to link their Latin American offices to insurance and reinsurnance clients in the US. Clyde & Co has also stated its interest in opening in Miami after posting an 8 per cent rise in turnover at the half year.