A trio of LB 100 firms have posted financial results for the 2013/14 year, with newly combined Penningtons Manches revealing revenue of £46.6m while profit per equity partner (PEP) came in at £268,000.
For Penningtons, it’s been a year of significant change. In October the firm took over troubled private client firm Manches as the latter entered into administration. The agreement saw 265 Manches employees, including 46 partners officially move to Penningtons in a pre-pack deal brokered by PwC. However, the combined firm this year has only three additional equity partners compared to Penningtons total prior to the takeover in 2013.
Manches had been earmarked for a merger by the LB100 last summer, after falling 11 places to 93 with revenues down 13% to £26.3m and PEP by 43% to £134,000. Penningtons ranked higher at 82, bringing in £32.5 million with a PEP of £275,000.
Nearly ten months on since the takeover, and having acquired offices in Reading and Oxford, managing partner David Raine is feeling positive about the move so far and says: ‘Integration has gone really well with Manches. The previous life seems an age ago. Most of us are under one roof now but it feels longer than six months. The teams are working together in the same sectors – that’s been a great help and heartening to see people sharing assistance and cross selling.’
The firm’s business services division accounted for 40% of fee income, while real estate and private client generated 24% and 36% respectively. Raine adds: ‘We’re delighted with how various parts of the firm did better, particularly with all the disruption from the combination with Manches. There were office moves, changes with IT systems … there was a lot happening.’
Meanwhile, city firm Lewis Silkin posted disappointing results, and recorded broadly flat revenue that rose just 1% to £41.4m, while PEP significantly dropped 15% from £344,000 to £291,000. A breakdown of the firm’s financials saw its employment reward & immigration practice generate 40% in fee income while its media brands and technology practice accounted for 25%.
Lastly, private client-focused Farrer & Co recorded a slight decline in revenue to £50.7m from £50.8m, while profit per equity partner increased by 3% to £440,000.