Tough year leaves Stephensons ‘shocked’ but upbeat
LEIGH-based law firm Stephensons Solicitors saw earnings and income shrink during a year it described as a “shock to the system”.
The business, which absorbed Altrincham practice Dobsons Solicitors in May, said fee income fell “significantly” in family, personal injury and crime. But there was some unexpected growth in commercial and residential property.
In an impassioned report in newly-filed accounts chairwoman Ann Harrison praised the firm’s hardworking staff and stressed how hard it was to win new business.
Profits, before members remuneration and profit shares, slipped 29% to £3.2m (2011: £4.5m) in the year to April on sales of £14.3m, down 7% (2011: £15.4m).
Ms Harrison said: “We do have to look at it in perspective however in that we are operating in an economy suffering from the worst recession in living memory.
“The firm has made a profit and is operating well within the funding in place. There are many other firms out there who are struggling in this difficult market place.
“All in all we have weathered the storm, albeit with much reduced profitability from that achieved last year, which was the best ever year. The results are testament to the very hard work of a loyal workforce who have worked long hours.”
The firm had around 356 staff and 29 partners during the year with the highest earner receiving a profit share of £235,265.
Stephensons expects referrals for personal injury work to lead to higher profitability levels in future years but admitted the market was changing due to a “proposed ban on referral arrangements”.
Ms Harrison added: “Cash flow remains within our forecasts but it is not always easy to obtain payment for work done. The economy as a whole is fragile and we need to encourage those who use our services to part with their money.
“We strive to outperform their expectations. We concentrate on getting the basics right to make sure we minimise our exposure to debts, disbursements and work awaiting billing.”
Stephensons has nine offices in Altrincham, Bolton, Leigh, Manchester, St Helens and Wigan.
