Addleshaw Goddard’s top of equity figure has edged closer to the £1m goal unveiled in John Joyce’s (pictured) revamped strategy last year, soaring 67% from £560,000 to £936,000.
The firm’s equity spread now ranges from £246,000 to £936,000 compared to financial year 2013/14 when it ranged from £220,000 to £560,000. The change shows the firm is on track to hit the financial targets set out in Joyce’s new strategy, unveiled at the end of last year and which wanted to see partners able to access greater rewards.
Addleshaws is aiming to become a top-20 firm by 2019, with a profit per equity partner (PEP) spread of £300,000 to £1m, as well as a profit margin of 30%. The firm is also targeting £6,000 per equity point by financial year 2017/18, with its current model running from 50 to 140 points with the opportunity to award bonus points based on performance.
Addleshaws has enjoyed a change in fortunes for the 2014/15 financial year, posting double-digit revenue growth of 12%, up from £171m in 2013/14 to £193m – the highest revenue figure since 2007/08 and just shy in nominal terms of the £195m it achieved then. The results mean larger pay packets for both fee and non-fee earners at the firm, with a ring-fenced bonus pool for strong performers being increased up to fourfold.
Last month, the firm obtained a fillip to its 2015/16 financials when it was revealed that it had won £12.6m in legal fees relating to action undertaken for Russian oligarch Boris Berezovsky. The firm has also recently broadened its strategy by expanding the Client Development Centre it established in 2005, creating AG Consulting and preparing a flexible lawyer offering.
For more on Addleshaws’ new strategy see: Last orders – Addleshaws gets behind its new leader, but can it regain its form?