Revenue hits five-year high at Kennedys up to £128.5m

Revenues have hit a five-year high at Kennedys climbing up 10 per cent at the latest year end from £117m to £128.5m.

The firm has defied the effects of the 2008 economic collapse pushing up turnover by 45.7 per cent since 2009/10 when it stood at £88.2m.

Net profit has increase by £5.3m over the same five-year period, rising by 10.5 per cent between 2012/13 and 2013/14 from £117m to £128.5m.

Average profit per equity partner (PEP) fell, however, down from £429,000 to £418,000, although the number of equity partners at the firm increased by four in the last twelve months to a high of 58.

Kennedys chief executive officer Guy Stobart also attributed the fall in PEP to increased investment over the period, including merger integration and an extensive overhaul of the firm’s IT systems.  

The revenue hike comes a year after the firm merged with aviation boutique Gates & Partners last May (31 May 2013). The deal added 20 partners to the insurance firm spread across four offices in London, Dubai, Singapore and Brussels.

The firm also attempted to tie up with Scottish firm Simpson & Marwick, a move that would have created a £160m firm (30 August 2013). The deal collapsed in December with both firms citing ‘complex reasons’ (11 December 2013).

There was heavy investment in the firm’s billing system, which was completely overhauled and the system relocated from London to Chelmsford and entirely computerised.

Earlier this year Kennedys called on its fixed-share partners (FSPs) to top up their capital contributions to 30 per cent of their salaries in response to HM Revenue & Customs’ (HMRC) changes to partnership taxation (15 May 2014).