Addleshaws’ profits dented by one-offs

NATIONAL law firm Addleshaw Goddard has announced 5% growth in annual fee income, but net profit was 11% down to £39.8m.

The firm, which has offices on Manchester, Leeds and London and a small, but growing international presence, said underlying fee income for the year ended 30 April 2014 was £172.5m, its highest for five years.

The firm said the profit number was impacted by £4.2m in exceptional items, related to the departure of 14 partners who left during the year, and also a bad debt relating to a conditional fee agreement, reportedly with Russian businessman Boris Beresovsky who died last year.

Recent partner departures include transaction services chief Andrew Chamberlain who left for DWF, Manchester-based corporate partner Tim Hamilton, commercial partner Helen Corner and three real estate partners who are going to help launch Nabarro’s office in the North West.

Excluding all non-recurring success fee income from its CFA portfolio, and all exceptional provisions, income growth for the year rose by more than 8%.

Newly-elected managing partner John Joyce, said: “Underlying growth of between 5 and 8% combined with a margin of 26% in a year of investment shows the strength of our core business.

“Our performance climbed throughout the year, and since the half-year more strongly still across the business. Our focus now will be to translate this momentum and our continued investment in the business, in the UK and internationally, into a material improvement in our competitiveness, performance and returns.”

Addleshaws said it had made progress on a number of fronts during the year.

Highlights include: retaining and improving its position and opportunity with many significant clients including Diageo, Sainsbury’s and William Hill; bolstering its sector focus and expertise such as in energy and rail and boosting its international reach by opening offices in Hong Kong and Qatar.

While a number of partners have left the business, almost 30 were recruited in the year.

Addleshaws also announced a new leadership line up with a reshuffle in the composition of the executive. Adrian Collins and Michael Leftley have joined the baord replacing Richard Papworth and Malcolm Pike.

The firm said Mr Papworth and Mr Pike would now focus on their divisional leadership and client relationship roles.