Stephensons’ profits climb by 15%

REVENUES at Leigh-based law firm Stephensons Solicitors increased by around 11% in the year to April 14, while profits climbed by 15% to £4.5m.

Profits per equity partner also increased to £161,357 despite the fact that partner numbers grew.

Chairwoman Ann Harrison attributed the firm’s success to the strength in a number of its counter-cyclical business services, including litigation, clinical negligence, family law and personal injury. She also said that its property division had also experienced a recovery in trading.

Harrison said that the profits were also pleasing as the firm had embarked on some major investment during the past year, both in terms of personnel and in its own facilities and service offer.

“We’ve taken on a lot of new people in areas which we wanted to grow and where we’ve been busy,” she said.

For instance, Rachel Adamson joined as a partner in October last year specialising in large-scale, white collar crime.

“We now also have probably the largest family law team in the North West, employing 89 people. That’s quite a lot of expertise,” said Harrison.

Karen Baron recently joined as a business consultant to help the firm to design more commoditised service packages ahead of the implementation of the latest phase of the Legal Services Act.

Baron had previously worked in the financial services sector designing similar packages, and is bringing forward Stephensons’ Workplace Plus product – an insurance-backed employment law advisory service for SMEs.

“I call it HR in a bag,” said Harrison. “It’s for firms that aren’t of a size to have their own human resources department.”

The firm has also continued to commoditise other high volume services in a bid to offer a fixed price for customers for routine legal work such as wills and new standard lease agreements – both of which can be completed online.

It is also offering an initial half-hour consultation service aimed at consumers for a fixed fee of £49.95.

“Research suggests that people are afraid to come to lawyers because they don’t know how much it will cost. Clients want certainty on fees.”

Stephensons was one of the first “High street” law firms in the area which began gearing up for the arrival of the latest phase of the Legal Services Act – the so-called “Tesco Law” allowing non-law firms to offer legal services.

It was a founder member of the Qualitysolicitors brand launched in 2009 and has opened a Qualitysolicitors outlet in Wigan and a concession in the town’s WH Smith store.

However, the Legal Services Commission has delayed the introduction of Alternative Business Structures (ABSs) for law firms until early 2012.

“We are keen to see how the market will develop,” said Harrison. “I suspect there won’t be a flood of ABSs. Some firms like the Co-operative and Irwin Mitchell have already announced their intentions but there will be a lot who will just be waiting to see what goes on.”

She feels that Stephensons has already benefited from its investment in the Qualitysolicitors brand.

“We did it to test the water initially,” she said. “It didn’t take off quite as quickly as expected but now there is some real traction behind it.”

She added that around 5% of all conveyancing deals done in the UK are now being carried out through a Qualitysolicitors firm.

Stephensons currently has a network of eight offices across the North West, including a presence in Manchester at the City Wharf development.