Eversheds accounts reveal £8.5m spent on restructuring and leases

Eversheds’ latest LLP accounts reveal that the firm spent £8.5m on restructuring and new lease provisions following its strategic review in January 2013.

In May Eversheds cut 116 roles (24 May 2013), having put up to 166 jobs at risk across its UK and Asia offices, and closed in Copenhagen as it sought to realign itself under a new three-year strategy (24 January 2013).

The LLP filings reveal that the firm incurred costs of £4.8m on the restructuring and a further £3.7m on the cost of leases on vacant or sublet properties.

The firm’s turnover increased by 2.8 per cent from £366m to £376m in 2012/13 (5 July 2013), with UK income making up £335.9m (89.2 per cent) of that figure. The rest of Europe brought in £20.4m (5.4 per cent), while income from the rest of the world totalled £20m (5.3 per cent).

Net profit at the firm dropped by 3.5 per cent as a result of the restructuring costs, taking it from £113.3m in 2012 to £109.4m in April 2013. However profit before taking into account the restructuring costs, which were classed as an exceptional item, rose 3.9 per cent to £117.8m.

The latest accounts also estimated that remuneration for the highest paid member of the LLP would be £1.22m last year, a 5 per cent increase on the previous year’s £1.16m.

The overall cost of staff for the year was down from £151.5m to £150.2m, with salary costs rising from £112.6m to £114.7m. The total number of people working at Eversheds, including LLP members, went down between 2011/12 and 2012/13 from 2,761 to 2,734.