Legal Business Blogs

‘Satisfactory’: King & Wood Mallesons LLP sees 10% drop in UK office revenue

Filings at Companies House by King & Wood Mallesons LLP (KWM LLP) have revealed that the firm’s UK office saw a 10.7% fall in turnover in the year to 30 April 2014.

KWM LLP, formerly SJ Berwin before its merger with King & Wood Mallesons in November 2013, covers the firm’s offices in the UK, Belgium, Italy, Germany, Spain, France, Luxembourg and the Middle East. Across that group, turnover fell 1.7% from £182.9m in financial year 2012/13 to £179.4m in 2013/14. Broken down by geography the UK’s contribution fell from £121.5m to £108.5m, though this was offset by strong performances in Europe which picked up 15.9% from £56.7m to £65.8m and the Middle East up 27% from £3.7m to £4.7m.

The hit to revenues saw operating profit fall from £59.6m to £54.3m in the year to 30 April 2014 while profit before partner remuneration and profit shares dropped 7.1% from £57m to £53m.

Staff costs fell slightly from £70.4m to £69.3m after a slight reduction in headcount – though this saw a 4.1% drop in those employed as ‘practice’ staff while support staff rose from 439 to 454. The average number of members dropped slightly from 162 to 161 though the largest entitlement to profit fell to £786,683 from £833,981.

The filings stated that members ‘regard the results for the year and future prospects of the Group to be satisfactory.’ The firm also stated that, ‘the LLP has access to considerable financial resources from across its group. As a consequence, the members believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.’

The firm’s cash in hand and at bank fell from £8.9m on 1 May 2013 to £3.5m on 30 April 2014 while net debt increased from £11.1m to £16.8m.