Stephensons sees fee income recover
LEIGH-based law firm Stephensons Solicitors saw earnings recover in the year to April.
Newly-filed accounts show turnover rose 14% to £16.3m, while profits, before members’ remuneration and profit shares, jumped 34% to £4.3m.
This is nearly back to 2010-11 levels before falling fee income in the family and personal injury teams contributed to a sharp decline in earnings in 2011-12.
Since then the firm has seen these departments recover along with commercial practice areas.
Managing partner Andrew Welch told TheBusinessDesk that the improved performance had come from driving the volume of work, rather than higher fees.
He said: “There’s not been an increase in unit cost, we’re not charging more for what we do, we’re getting more work in. There’s still considerable cost pressure. Our perception is clients are demanding more transparency on cost and more efficiency. Fixed fees are becoming more prevalent.
“I would say pressure on legal costs is downwards and law firms have to concentrate on efficiency, giving value for money, and that’s what we’ve been doing.”
He said the new London office had performed well and there are signs of recovery in some areas such as residential conveyancing.
In her report chairwoman Ann Harrison said: “We have returned to our path of overall growth. The underlying profitability of the firm is strong and we are able to deal with change through a careful and financially considered approach.”
She added: “Overall, the results are excellent given the state of the market place and the economy not showing much in the way of recovery. Many other legal firms are struggling and the year has seen some noticeable larger firms either closing down or being rescued.
“All in all we have weathered the storm well, reaching our profitability targets and operating within our cash flow forecasts. We have not reached the 2011 level of profitability, our best year ever, but the results are excellent nevertheless. The results are testament to the very hard work of a loyal workforce who have worked long hours.”
The firm had around 378 staff and 31 partners during the year with the highest earner receiving a profit share of £323,316, up from £235,265.
Stephensons has 12 offices in Altrincham, Bolton, Leigh, Manchester, London, St Helens and Wigan. Net debt stands at £417,000, down from £1.2m.
