Law firm warns EU uncertainty means growth ‘a challenge’ for 2017
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LAW firm Addleshaw Goddard has seen annual fee income grow 5% to £202m but warns EU uncertainty is affecting transactions.
Distributable profits for the year ended 30 April 2016 increased by more than 20% to just over £71m.
The increase in income and net distributable profits flowed through to net cash, which closed at £25m, an increase of more than £20m.
This year’s figures include an element of uplift in fees paid for mandates executed in previous years, the firm added.
John Joyce, managing partner said: “Following on from a 12% increase in income in 14/15, we are very pleased to have been able to deliver a further increase in both profits and income.”
Two years ago the firm set out a plan to improve business focus, performance and returns and Joyce said it was making good progress, underpinned by some strong returns from its transactional and international teams.
He added: “There will now inevitably be an extended period of uncertainty as a result of the EU referendum and other macro economic issues.
“We have seen that reflected in confidence and transactional activity since the start of this year and are thankful that a lot of the measures we have taken over the last two years leave the firm not only in an incredibly strong position but also very well positioned with an improved platform, client portfolio and sector focus. Delivering sales growth is a key imperative for us this year but will clearly be a challenge.”
The firm said it continues to invest extensively in both Leeds and Manchester, which it described at “key markets” – with planned moves to 3 Sovereign Square, Leeds and 1 St Peters Square, Manchester, (scheduled for late 2016 and early 2017 respectively).