RPC has reported a 3 per cent drop in net profit from £26.8m to £26m at the end of the latest financial year, alongside a 2.4 per cent rise in turnover from £82.1m to £84.1m.
The substantial increase in income during the 2012/13 financial-year was also met with a 16.5 per cent rise in net profit. Last year was the first time profit has dropped at the firm in five years.
RPC is a full equity partnership so the 2013/14 profit decrease had a direct effect on average profit per equity partner, which dropped from 11.5 per cent from £373,000 to £330,000 during the same year.
RPC managing partner Jonathan Watmough attributed the fall in profits to “heavy investment ahead of the curve” and “timing on the delivery of some revenue that has now spilled over into this year”.
The investment includes new infrastructure across the firm, and a new office in Singapore, where the firm raided Ince & Co for its Asia insurance and reinsurance group head Iain Anderson in October (7 October 2013).
The firm’s LLP filings for 2012/13 showed that investment had led to a £2.8m increase in net debt in from £2.3m to £5.1m (5 February 2014).