Fladgate breaks £25m barrier with revenue and profit rise

Fladgate has posted a 10 per cent rise in total revenue for the 2011-12 financial year, with turnover rising to £25.9m.

Provisional figures suggest the firm’s average profit per equity partner (PEP) and average earnings per partner (EPP) both rose by almost as high a percentage, 9 per cent.

Although chief operating officer John Goreing said it was too early to give a definitive figure, “early indications” suggested PEP would be just under £400,000 while EPP would be in the ballpark of £260,000 or higher. The firm’s average fees per fee-earner figure was £312,000 last year.

Fladgate chairman Charles Wander said the firm’s strong performance had partly been driven by increased activity in its core areas of real estate (which saw the largest year-on-year revenue increase), and corporate and partly by its success in attracting laterals throughout the year.

“We’ve definitely seen the benefit of the move from Mayfair to mid-town,” said Wander. “Our financial stability plus the fact that we have no debt is also proving very attractive to potential laterals.”

Highlight transactions on which Fladgate advised last year included the total £257m sale of Esporta Healthcare to Virgin Leisure; the sale of Plymouth Argyle Football Club, on which it advised purchaser Green Pilgrim; the £41m acquisition of Powerhouse by its client BidTimes; and the MBO of Blanc Brasseries.

Lateral hires made by Fladgate during the year include Amy Collins, a corporate partner from Olswang, and Macfarlanes’ property partner Richard Reuben.

Fladgate also boosted its property team with the hire of Finers Stephens Innocent’s joint head of real estate Stephen Lewis, who started at the firm last week.

The firm also launched a new media and technology group during the year headed by another lateral, former Harbottle & Lewis managing partner Lawrence Abramson, who joined in 2010. The group brings together various strands of the practice inlcuding IP, IT, commercial and litigation which, added Goreing, made year-on-year revenue comparisons difficult in this area.

Goreing added however that the firm was predicting double digit revenue increase for the current financial year.