PEP falls at DAC Beachcroft despite profit being up 42 per cent

DAC Beachcroft has announced revenues of £188.2m for the financial year 2012/13, up by 14 per cent from £164.8m in the audited accounts for 2011/12.

The rise means that, unlike last year, the firm is now reporting turnover exceeding the combined revenues that the legacy firms Davies Arnold Cooper (DAC) and Beachcroft reported in 2010/11.

Net profit at the firm was £31.8m at the end of the last financial year, up 42 per cent from £22.4m in 2011/12, while average profit per equity partner (PEP) was £284,000, down 11 per cent from £321,000 the previous year, which was the first financial filing since the November 2011 merger between Beachcroft and DAC.

In 2010/11 Beachcroft reported PEP of £333,000 and DAC reported £268,000 (28 June 2012).

DAC Beachcroft managing partner Paul Murray said in a statement: “Year-on-year comparisons continue to be distorted by the merger mid-year in 2011/12 but these numbers will provide a baseline for next year. Overall, the results are acceptable in what continues to be a challenging and changing economic environment.”

Despite the year-on-year growth, DAC Beachcroft senior partner Simon Hodson admitted that debt tripled at the firm following the merger, with net debt increasing from £10m in 2010/11 to £34m in 2011/12 – £29m of which was bank loans payable within a year (5 February 2013).

The firm is currently undergoing a consultation concerning a handful of senior lawyers in its employment and pensions groups in London (19 June 2013), news of which broke just over a week after legacy DAC senior partner Danny Gowan retired, prompting a revamp of the firm’s board (11 June 2013).