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‘Particularly pleasing’: DAC posts 20% rise in PEP despite subdued revenue

DAC Beachcroft‘s profit per equity partner has increased 20% from £358,000 to £432,000, despite subdued revenue growth which the firm attributed to global investments and challenging market conditions over the year.

The firm recorded a 3% revenue rise from £201.6m last financial year to £207m this year.

DAC Beachcroft notably further reduced its debt by £1m to £19m over the period.

In a statement, DAC’s managing partner David Pollitt (pictured) highlighted panel wins for the firm, including RSA, Chubb, BT and Crown Commercial Services, alongside retaining a place on the NHS resolution panel, as contributors to the firm’s growth.

Given the economic climate, Pollitt said that to have achieved all this ‘in a year of challenging market conditions, including Brexit, is particularly pleasing.’

Pollitt said: ‘We have also continued with our investment in international expansion this year with new associations formed in Peru and Central America, as well as being one of the founding members of Legalign Global, an alliance of four of the world’s leading insurance law practices.’

DAC signed up to Legalign in January along with three others: German firm BLD Bach Langheid Dallmayr, US firm Wilson Elser and Australian outfit Wotton + Kearney.

The firm also filed its LLP statements for 2015/16 in January, which showed that turnover rose 1.5% to £201.5m from £198.5m, while profit before tax grew 9.5% from £32.3m to £35.3m.

Meanwhile, as the firm’s average number of employees increased from 2,027 to 2,093, average statutory profit before tax per member increased from £296,000 to £361,000.

Total net debt at year-end fell 18% from £24.6m in 2015, to £20m in 2016, while growth in operating profit grew 10.2% from £33.2m to £36.6m.

In December 2016, DAC strengthened its Latin America presence through insurance associations with Torres Carpio Portocarrero & Richter (TCPR), and BLP in Peru and Central America.

The associations are additions to DAC’s existing presence in Latin America, where the firm has offices in Mexico, Colombia and Chile, a Brazil alliance and a Miami hub.

The new arrangement will see all three firms work together to share best practice and meet mutual clients’ key business needs in Latin America.