"Significant bonuses" to return to law firm after fee income jumps

FEE income at law firm Addleshaw Goddard grew 12% to £192.5m and promised “significant bonuses to our higher performers” will follow.

Last year’s results also showed a solid increase in income, up 5% to the highest level in five years, but net profit had dropped 11% to £39.8m.

Although profit-per-equity-partner (PEP) for this year will only be confirmed once the auditors have completed their work, the company said it is expected to have increased faster than the growth in income.

Addleshaw Goddard, which can trace its roots back to the formation of Booth & Co in Leeds in 1775, employs 411 of its 1,300 staff in the Yorkshire city. Its other UK offices are in London and Manchester, while it also has offices in Doha, Dubai, Hong Kong, Muscat and Singapore.

Managing partner John Joyce said: “There have been a number of things we wanted to address this year which we have done whilst still delivering great results and leaving the business in a significantly better place than it was 12 months ago.

“We are really pleased with the progress we have seen this year. Income is at the highest level since 2007/08, profitability has increased at a greater rate than turnover and we have ended the year in a positive cash position for the first time since 2009.

“That material improvement in our performance will also allow us to pay significant bonuses to our higher performers for the first time for a number of years.”

The firm appointed 25 partners in the year, including Paul Hirst from DLA Piper who joined to head up the transport team.

In April, the firm confirmed it is to move out of its current location at the end of next year into three floors of 3 Sovereign Square, currently under construction next to KPMG’s new offices.