Scottish firm Brodies has once again turned in a strong financial performance, reporting a double-digit growth in both revenue and profits per equity partner (PEP) in its audited accounts for the 2014/15 financial year.
Gross revenues rose 11% at the firm to £57.9m for the 2014/15 financial year from £52.1m in the previous year, while PEP jumped 12% to £532,000, up from £474,000 the previous year.
The profit growth comes despite a 9% rise in costs to £30.9m, and the firm saw a 14% increase in profits before partner distributions to £27.1m, while cash balances at the firm grew by 53% to £14.85m. The firm reported no external debt.
The rise in numbers marks the firm’s fifth consecutive year of revenue and profit growth, and a 12% compound annual growth rate over the past decade. Last year, Brodies posted a 13% increase in revenues after breaking the £50m barrier, alongside a 10% rise in PEP.
Overall lawyer and staff headcount at the firm grew 7% from 564 to 603, while partner heads increased by two to 82 up till the end of the last financial year. However, the firm currently houses 92 partners after a spate of lateral hires joined the firm recently including, in June, rival firm Simpson & Marwick’s well-regarded 15-strong family law team and its former head Shaun George.
Investments saw the firm move into new purpose-built offices, Brodies House, in Aberdeen while plans are underway to move its Glasgow offering to new premises. The firm’s IT systems were also improved with the firm achieving certification to the 2013 version of ISO 27001.
In addition, Brodies boosted its partnership by seven in a bumper promotions round – a significantly larger round than in the last two years – while promoting nine to a newly-created managing associate role.
Brodies managing partner Bill Drummond said: ‘The past financial year saw gradual improvement in the Scottish and wider UK economy, the historic referendum on the question of Scottish independence and continued change in the Scottish legal market, with the disappearance of yet more well-known independent firms. Against this backdrop, Brodies focused on delivering and investing in client services and engaging with individuals, business and organisations across the UK on the legal aspects of potential constitutional change.
‘Improved economic stability led many clients to invest in their businesses and ventures and re-visit their personal affairs, and as a result our lawyers have been busier than ever, with those handling disputes and regulatory issues becoming particularly active in the second half of the year.’