Average profit per equity partner has fallen by 11 per cent at Sacker & Partners from £860,000 to £765,000
Sackers, which reports its figures on a calendar-year basis, saw its turnover in 2012 increase slightly by 1.3 per cent to £24.3m from £24m in 2011, while net profit saw a 4 per cent rise from £12m to £12.5m. Both figures are at their highest level since the firm broke into the top 100 rank of the UK 200 in 2006/07 with turnover of £19.1m and net profit of £10.4m.
The firm’s PEP, however, fell by 11 per cent from £860,000 to £765,000, largely due to addition of three new equity partners.
Sackers’ highest earning partner took home £1.15m, 4.5 per cent higher on the previous year’s £1.1m, but its equity spread has widened as the bottom of the equity stood at £362,000, down by 9.5 per cent from £400,000.
More than two-thirds (80 per cent) of the firm’s clients are pension scheme trustees, including the trustees of the pension funds for Lloyds Group, HSBC Bank, Royal Mail and the BBC.
The firm’s advisory role in the privatisation of existing client Royal Mail Pension Plan (RMPP) is a particular highlight of the firm’s work in 2012. In what is likely the biggest deal in the history of the British pensions industry, the RMPP handed over £27bn’s worth of assets to the UK government in return for the state taking on its past service liabilities under a new public sector scheme – Royal Mail Statutory Pension Scheme (RMSPS).
According to Sackers’ senior partner Ian Pittaway, the firm’s advisory team had risen to many challenges and unprecedented issues during the Royal Mail project and its work for the client has generated good fees for the firm and has contributed considerably to its turnover in 2012.
“Clients are more careful with their legal spendings and are only willing to spend on essential things. This means it’s harder for firms to grow. Our strategy is to remain focused on servicing the 800 clients in our niche sector, and steadily edging forward with our turnover,” said Pittaway.