Clydes’ revenue rises 8.5 per cent to £365.1m, predicted PEP at £600k

Clyde & Co has increased its revenues by 8.5 per cent from £336.6m to £365.1m for the 2013/14 year-end.

Peter Hasson

Clydes chief executive Peter Hasson said average profit per equity partner (PEP) was expected to come in at £600,000, 3.5 per cent ahead of the £580,000 posted in 2012/13, although this was yet to be confirmed.

The firm has posted an 11 per cent increase in profit, calculated on the basis of total remuneration to all classes of partner globally.

Outside the UK, the Clydes’ international offices contributed 40 per cent of the overall revenues – the equivalent of £146m.

The firm attributed the growth to the gradual recovery of the UK economy and to its continued investment in the corporate group in its core markets of insurance, energy, natural resources and infrastructure.

The corporate and transactional practices saw the most dramatic growth over the last financial year, with a revenue increase of 17 per cent.

The insurance practices grew by 15 per cent, which it said reflected the consolidation of the 2011 merger with Barlow Lyde & Gilbert (BLG), as well as continuing investment in its insurance capabilities elsewhere (8 August 2011).

Growth appears to have slowed compared to 2012/13 when Clydes posted a 17 per cent rise in turnover from £287m in 2011/12 to £336.6m (11 June 2013). Hasson said 2012/13 reflected disproportionate growth as it was the first set of results following the BLG merger, inlcluding 12 months income from both firms instead of the 12 months from Clydes and six months from BLG that was reported in 2011/12.

“The key reason that we have been able to turn revenue growth into profit growth is the savings we’ve made from the integration of the BLG merger,” Hasson said. He added that overhead costs had remained stable as a result of mangerial integration across the two merged firms. 

In January the firm’s LLP accounts for 2012/13 reflected the economy drive, showing that it had reduced the amount of loans due within a year by 61 per cent, down from £442,000 to £169,000 and cut its overdraft from £7.3m to £2.2m. At the saame time the firm sold off £1.1m of cars and increased its cash flow substantially, from a decrease of £25.2m in 2012 to an increase of £1.2m in 2012/13 (22 January 2014).

It has been a strong year for the firm’s Asia Pacific network, which posted a revenue growth of 40 per cent for 2013/14. The region contributed £30m to overall turnover – £8.21m.

Last year was the first full year’s contribution from Clyde & Co’s alliance with former Linkaters’ ally Allens, which the firm poached a team of eight from launch in Australia in October 2012 (2 July 2012).

There was also growth in China after Clydes was given approval for a Beijing launch in May last year (7 May 2013), giving it the green light for a formal association with seven-partner Indonesian firm Lubis Ganie Surowidjojo (LGS) in September (2 September 2013).