Addleshaw Goddard’s latest LLP accounts revealed a £4m increase in its bank borrowing and a 10.5 per cent rise in the value of its debtors from £76m to £83m.
While Addleshaw Goddard posted a revenue drop of two per cent from £170m to £167m in May (31 May 2013), the audited accounts show that revenue fell from £168m to £164m at the end of 2012/13.
The accounts also show a 6 per cent drop in profit from £55.5m to £52.1m, while the highest remunerated partner received £583,173 – just 1.6 per cent less than last year.
According to the accounts net debt at the firm increased by £2.2m from £12.1m to £14.3m.
Addleshaw’s overdraft was reduced from £2.3m to just £5,000, but its rolling bank loan facility increased by £4m from £13m to £17m, at an interest rate of an average of 2.6 per cent on the balance sheet date.
Managing partner Paul Devitt said that the reduction in profit and increased borrowing reflected investments that the firm had made over the 2012/13 financial period.
“In the last year, we decided that the use of a rolling credit facility provided us with the lowest cost option to finance our working capital and investment requirements,” Devitt added.The accounts also show that debtors rose at the firm by 10.5 per cent. Devitt said that the rise was due to an increase in activity towards the end of the financial year but insisted that the firm’s lock up remains below 100 days.
Addleshaw Goddard has made a series of international office openings since May 2012. The firm launched in Singapore in May 2012 (4 April 2012), formed an by Dubai in September 2012 (11 July 2012), and followed this with an addociation in Oman March 2013. In May last year it was granted a preliminary license to practice in Hong Kong (8 August 2013), while at the same time opening a base in Qatar (28 May 2013).