Profit per equity partner: £220,000
Equity spread: £158,000-£230,000
Net profit: £3.9m
Profit margin: 22 per cent
Salaried partner remuneration: £80,000 (average)
Revenue per lawyer: £112,000
Revenue per partner: £461,000
Revenue per equity partner: £972,000
Cost per lawyer: £87,000
Profit per lawyer: £25,000
No of partners: 38
No of equity partners: 18
No of female partners: Nine
No of female equity partners: Three
Total no of fee-earners (including consultants, paralegals etc): 190
Total no of fee-earners (excluding consultants, paralegals etc): 156
Total no of staff: 315
Leverage ratio: 1:6.56
Equity partner to staff ratio: 1:6.94
Fee-earner to staff ratio: 1:0.66
Financial management: £2.2m of WIP at year-end. A third of WIP is older than 120 days and the remainder is 60 days or younger. Average debtors 77. Practice profile by revenue is banking and lender services 27 per cent, corporate and commercial 26 per cent and property 25 per cent. Partner contributions are £10,000 per 10 equity points. No material debt and no adjustment for FRS5.
Equity structure: Modified lockstep. Partners spend an average four to five years as salaried partners before moving into the equity. Equity partners can be frozen on the lockstep, but also accelerated and decelerated. However, the firm has not operated a downward lockstep except for retiring partners. The typical progression to full share is five to six years. Remuneration and progression are determined on the recommendation of the managing partner and senior partner.
Billable hours targets: 1,100 partners.
Key clients: Avon Rubber, Alfred McAlpine, Barclays, First Choice Holidays, GMAC, Hanson, Lloyds TSB, Punch, Spirit, Triodos Bank.