Burges Salmon news, updates and analysis | Page 1 of 3

Burges Salmon had its core sector groups to thank as it today (27 September) unveiled a robust 10% uptick in turnover from £108.7m to £119.2m.  

It marks a significant speeding of growth, after last year revenues grew by 4% from £104.9m to £108.7m.  

Profitability figures were less flattering, with operating profit up by 5% while profit per equity partner (PEP) inched upwards 1% from £512k to £517k. However these figures are more favourable when factoring in the firm’s significant investments over the last year – since May 2021 Burges Salmon has appointed 15 new partners, causing overall equity partnership numbers to swell from 71 to 73. 

This included a record round of partner promotions in March, which saw ten associates made up.  

Managing partner Roger Bull hailed the impact of the firm’s sector specialisms and key practice areas on the successful results. He told Legal Business: ‘One of our key areas of investment has been tech, and as such we made up four of our new partners in that area. That saw a really significant increase in the last 12 months, roughly 100% growth.’

Bull further revealed that the financial services sector boosted revenue by 20%, real estate by the same margin, while its defence sector saw 30% growth. On the practice front, Bull said that the firm’s corporate practice benefitted from a transactional boom this year and increased turnover by 20%. 

In terms of highlights from the year, in May the firm marked the three-year anniversary of its Edinburgh office. The office has doubled its partner count since inception, from three in 2019 to six now, as part of a 45-strong team. Such was the headcount growth, during the summer Burges Salmon revealed it had taken out 3,000 sq ft of additional space in the Atria One in the Scottish capital.  

Bull concluded: ‘As it stands, transactional markets remain good. Most law firm leaders have their eyes open and are aware of uncertainty but the firm is still performing strongly. The feedback I get from partners is that we have a good strong pipeline, and combined with our strong reputation in the market, we maintain a positive outlook.’ 

tom.baker@legalease.co.uk 

Burges Salmon has become the latest firm to defy market uncertainty in the face of the coronavirus pandemic as it posted double-digit revenue growth to pass the £100m turnover milestone for the first time.

A strong set of 2019/20 results for the Bristol-based firm saw revenue grow 11% from £94.6m to £104.9m as operating profit increased by a comparable 11%. Also, the firm’s reporting period runs until the end of April, encompassing some six weeks of the Covid-19 lockdown and fallout.  

However, profit per equity partner (PEP) was more subdued, rising only 1% from £443,000 the previous year to £446,000, thanks to a substantial uptick in the number of equity partners at the firm.

Speaking to Legal Business, managing partner Roger Bull was suitably ebullient about Burges Salmon’s financial position and how it has adapted to remote working. ‘We have invested in technology and have had agile working for several years, so people were used to working from home anyway. There was a bit of catching up on the business services side with things like billing remotely, but within two weeks of lockdown that had been ironed out.’

He also emphasised the firm’s continued investment in new partners, having promoted five lawyers to partner in 2019 and made six promotions this year, not to mention hiring banking partner Stuart McMillan from DLA Piper to its newly established Edinburgh office last October.

‘There was no freeze in recruitment so we have had to integrate people, including a new cohort of trainees, remotely,’ said Bull. ‘We had been having hybrid meetings, which were a combination of people being in the room and other dialling in remotely, but now following the government’s advice we will all be working from home again unless it’s absolutely essential.’

Burges Salmon is two years into a three-year growth strategy, which Bull said is working well but has become subject to review, given the unforeseen market challenges of 2020.

Said Bull: ‘We thought about extending the three-year strategy in light of coronavirus but in the last few months decided instead on a strategy renewal to start in May next year.’

There are three key elements to the firm’s strategy: growing core sectors including energy, private wealth, healthcare, transport and infrastructure and core practices of corporate, projects and litigation; the preferred firm network in the US and Europe; and expanding the UK business in the form of the new Edinburgh office. The Scottish office now boasts 20 lawyers, including five partners, with plans to grow further.

Said Bull: ‘Referral work has led to revenue more than doubling in the last two years. The US is the largest market for referrals, followed by Europe, especially Germany, then France, Spain, Belgium and the Netherlands. Our UK coverage has been enhanced with our Edinburgh office. It has been a successful enterprise and a part of our revenue success.’

In spite of uncertainty of how the pandemic will play out, Bull concluded on an optimistic note: ‘Having had a strong last year, not carrying external debt, strong cash flows and resilient sectors all put us in a strong position to withstand a downturn. We need to stay client-focused and market-aligned. We need to get through Covid, work with clients and look after our people.’

nathalie.tidman@legalease.co.uk

UK firm Burges Salmon’s profitability fell 8% in the year to 30 April for the first time in six years, which the firm attributed to the negative impact of Brexit on its business in a challenging year.

This year, the Bristol-headquartered firm’s revenue stayed at £87m, slightly down from last year’s £87.4m.

Profit per equity partner (PEP) also dropped to £435,000 from last year’s £525,000.

Managing partner Peter Morris told Legal Business that the drop in profitability came as the firm ‘didn’t have the revenue growth we had planned for’. This was due to the fact ‘we experienced a lower level of work in the first half of the year, probably Brexit-related.’

‘Our work levels then returned to grow across all practice areas, peaking in the fourth quarter’, Morris said.

In contrast, revenue and profits both increased by 8% and 9% respectively in 2015/16, and at the time the firm had grown 32% consistently since 2011.

The firm, which counts 434 lawyers and 88 partners across its two offices located in Bristol and London, announced a new strategy at the start of the financial year, narrowing its sector expertise onto seven areas: transport, infrastructure, private wealth, real estate, energy, financial services and the public sector.

Morris described the strategy as successful: ‘It helped us address clients’ needs in a more focused way. A good example is probably the infrastructure area, which is very topical at the moment.’

The firm said it was focused on the medium to long-term outlook, resulting in three internal promotions to the partnership and two lateral hires.

During the year, Burges was appointed to tier one of the government’s £400m Crown Commercial Service General Legal Services panel.

Burges also acted for John Lewis Partnership, on whose panel the firm sits since 2015.The firm also worked for a number of governments and public bodies, including the Cayman Islands and the British ministry of defence, along with the Bank of Tokyo-Mitsubishi and HSBC. Other clients were Premier Asset Management, Virgin Active, BEIS, M&S and Ascent.

Employment partner Chris Seaton step in as new senior partner on 1 May succeeding corporate partner Alan Barr after six years. Morris said the new senior partner, who joined the firm in 1991 and was part of its partnership committee since 2011 will bring forward the firm’s new strategy.

Marco.cillario@legalbusiness.co.uk