Clyde & Co partners boost profit share and reduce contributions

Clyde & Co’s LLP members more than halved their capital contributions to the firm last year, from £18m to £6.7m, according to accounts filed today with Companies House.

Peter Hasson

It was a good year to be a Clyde & Co partner – the firm added 39 members over 2012/13 and raised the discretionary profit share by over 20 per cent to £81.6m on top of a remuneration package of £3.3m.

Members’ drawings stood at £71.9m up from £56.6m the previous year and the highest-paid partner took home £1.29m compared to £1.27m in 2012.

Groupwide, Clydes, which includes offices in Greece, Tanzania and Australia, also paid higher group wages and salaries to its 1,341 staff – up from 1,195 the previous year – at £129.4m, a 26 per cent increase on 2012.

The UK-registered firm paid £34.7m to staff, up from £30.9m and employed an average 202 practice staff in 2013, up from 190 in 2012.

Turnover at the firm increased from £285.8m to £334.5m and profit was up 20 per cent, from £70m to £84.9m. The firm took in a higher fee income of £334.6m in 2013 and work performed and unbilled stood at £25.95m – down slightly on the previous year’s £27.4m.

The firm also reduced the amount of loans due within a year by 61 per cent, down from £442,000 to £169,000 and cut its overdraft from £7.3m to £2.2m.

Over the year the firm sold off £1.1m of cars and increased its cash flow substantially, from a decrease of £25.2m in 2012 to an increase of £1.2m in 20123.

The firm has seen a growth in corporate and M&A fees over the past few years, with corporate revenue climbing from £53m in 2012 to £70.7m in 2013 (3 December 2013).

In June 2013 the firm reported a rise in profit per equity partner (PEP) of 5 per cent to £580,000, just above the £550,000 predicted by chief executive Peter Hasson in 2012 (11 June 2013).

But things are not all rosy at the firm – it is heading for a Supreme Court hearing on 24 March over a whistleblowing claim bought by former partner Krista Bates van Winkelhof (24 September 2013).  The partner alleges she was unfairly dismissed from the firm after blowing the whistle on the managing partner of Clydes’ association firm Ako Law in Tanzania (26 September 2012).