RPC reports first profit drop in five years, revenue up to £84.1m

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.

Last year RPC announced a revenue increase of more than 20 per cent from £68m in 2011/12 to £82.1m at the end of 2012/13 (11 June 2013) on the back its growth strategy.

Between January and August 2012 the firm opened three new offices: Singapore (27 October 2011), Bristol (3 January 2012), and Hong Kong (4 April 2012).

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).