Eversheds posts record profits in year of job cuts as turnover hits £376m

Eversheds has posted a 2.7 per cent increase in turnover for the 2012/13 financial year to £376m, a similar rate of revenue growth as in 2011/13.

The firm has also reported record profits, with net profit increasing by 6 per cent year on year to £85.4m. Average profit per equity partner (PEP) also increased, by 2 per cent to £642,000.

The firm said the increase in PEP reflected the increase an equity partner numbers year on year.

Earlier this year the firm placed 82 lawyers and 84 business support staff into redundancy consultation (24 January 2013), ultimately cutting 116 roles in (24 May 2013).

In a statement Eversheds’ chief executive, Bryan Hughes said: “We anticipated difficult trading conditions at the start of the year and planned accordingly which enabled the firm once again to deliver a strong set of financial results. Maintaining revenue growth was very pleasing, particularly as our revenue line was flat at the half year. This, alongside the very favourable cash position, emphasises the financial robustness of the firm. The continued focus of the whole team on managing the margins, ensured that the growth cascaded through to the bottom line, creating an excellent platform for 2013/14.”

The firm’s most recent LLP accounts showed that Eversheds had paid down nearly £20m of its debts in 2011/12, as the firm’s top line returned to growth for the first time in three years (22 January 2013).

In the 2011/12 financial year Eversheds posted its first revenue rise in three years, with turnover growing 3 per cent to £366m (18 June 2012).

Net profit at the firm also jumped 10 per cent in 2011/12, from £72.2m to £79.4m, while average profit per equity partner increased 14 per cent to £632,000, up from £555,000.

The firm said that last year a number of areas had experienced growth with litigation seeing “strong growth” across the board. Its financial institutions and energy and natural resources sectors grew by 20 per cent and 14 per cent respectively.

Eversheds added that continued investment in its international operations had resulted in revenue growth across all regions, with Asia and the Middle East both seeing double digit growth in the year.

In addition the firm saw a substantial improvement in its year-end cash position underpinning the financial stability of the firm.