Revenue drops at Shoosmiths, but profits strengthen

LAW FIRM Shoosmiths has blamed a £3m drop in revenues on a ‘change of focus’ in its consumer brand, Access Legal.

But the firm, which employs 170 people in Birmingham, said profits were up from £11m last year to £13.7m this year, thanks to strong performances in other divisions.

Profit per equity partner was £350,000, a 38% increase on last year’s £256,000.

The firm has posted an overall income of £87m, which is £3m less than 2009-10, although the firm’s corporate, commercial, real estate and lender services teams saw a 5% increase in revenue.

The reduction in overall income was anticipated following the change in focus within the firm’s consumer services brand, Access Legal from Shoosmiths, which was initiated two years ago. During this time, income levels in the consumer business have fallen, but profitability has been maintained.

Partner and head of Shoosmiths’ Birmingham office Jason Jackson said: “Celebrating a record year of promotions at our Birmingham office recently was fantastic; being able to follow that up with news of a second year of profit growth with a 25% rise is just the icing on the cake.

“Although the legal market continues to remain choppy for many law firms, we really couldn’t be in better shape and this is reflected in our financial results. We’ve got a fantastic pool of legal talent here, and look forward to more positive times ahead.”

Shoosmiths’ corporate team posted a revenue increase of 9% in a year when it completed private equity deals with a deal value of £271.1m.

The firm’s Lender Services Group, which advises finance sector clients on finance litigation, recoveries and collections and regulation and compliance, grew its income by 10%. The commercial team posted income growth of 8% and was ranked a top 10 firm for commercial legal advice by FTSE 100 plc clients.  The firm’s real estate practice, including planning, construction and litigation, posted a 5% year on year income rise.

Shoosmiths’ Birmingham-based insolvency and restructuring team recently helped a client buy 37 Oddbins stores, and a cross-discipline Midlands team advised Thorntons on its decision to outsource its warehousing and distribution to supply chain business DHL.