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Financials 2013/14: Baker & McKenzie’s UK outfit sees profits slump despite turnover rise

Baker & McKenzie UK arm’s LLP accounts for the year ending 30 June 2014, filed at Companies House this week, show operating profits fell some 13% from £48.2m in 2012/13 to £42.1m in 2013/14.

Despite the profit pot for partners also slipping 13% to £41.5m at Bakers’ UK arm in 2013/14, the highest paid partner secured a £2.1m package, nearly £750,000 more than the highest paid partner the previous year.

Although partners of the UK LLP stayed the same at 82 and fee-earners numbers dipped slightly from 315 to 312, the firm saw support staff numbers rise by 4.5% from 289 to 302. The accounts revealed a £10m increase in the amount due by partners, rising from £59m in 2012/13 to £69m in 2013/14.

The fall came amid a small rise in turnover, up from £130.4m in 2012/13 to £133m in 2013/14 while cash in bank was also up, rising from £129.8m to £138.4m in 2013/14.

The accounts also showed that Baker & McKenzie’s provisions against client claims dropped from £500,000 to £350,000 after releasing £150,000 in the 12 months to 30 June 2014. The firm prevailed in a £11.7m professional negligence dispute from German flavourings maker Symrise over how it structured the company’s tax arrangements earlier this year.