Legal Business

‘Very encouraging’: RPC posts profit growth in shrinking partnership after splitting off consulting business

‘Very encouraging’: RPC posts profit growth in shrinking partnership after splitting off consulting business

RPC has reported revenues of £108.6m for its legal business for 2018/19 after selling half of its management consulting arm.

The firm, which offloaded 50% of RPC Consulting to software company Marriott Sinclair in April 2018, announced today (25 July) that both like-for-like revenue and net profit for its legal arm alone rose 4% in 2018/19.

The four-year-old consulting arm, meanwhile, increased turnover by 33% from around £7m to £9.3m in the year to April 2019 and turned a profit for the first time after losing £2m in the previous financial year.

Profit per equity partner (PEP) at the law firm was up a striking 27% to £442,000 in 2018/19, as its all-equity partnership shrank by nine to 74.

Direct comparisons with its 2017/18 results are difficult, as the consulting arm was still fully owned by the firm last year. They showed higher revenue of £112.7m but much lower profits and PEP at £28.9m and £348,000 respectively.

Speaking to Legal Business, chief financial officer Steven Rowan said he was ‘pretty pleased’ with the performance of RPC’s legal business. ‘We had a strong performance from our core areas: strong litigation, decent corporate activity and a solid performance from our insurance practice.’

The firm’s equity spread increased considerably in 2018/19 as the top of the equity shot up 40% from £1.2m to £1.7m, while the bottom of equity was marginally up 4% from £185,000 to £192,000. ‘We want to reward top performers at the firm, whether partners or associates, and the top of the equity reflects [this],’ added Rowan.

Launched in 2015, RPC Consulting was loss-making in its first three years of activity after receiving substantial investment from the partnership. Rowan said losses by RPC Consulting were ‘in line with what we were expecting because it was a near start-up business’.

As of 30 April 2018 the firm moved into a 50/50 joint-venture arrangement with Marriott Sinclair, a Cambridge software company that was previously acquired by RPC Consulting in July 2015.

‘RPC Consulting has moved into a new phase of growth, so we wanted to ensure that the relationship with the law firm was appropriate for the next stage of its development, and allow it to operate with more of a sense of independence,’ said Rowan. He added that the business was still in the process of finalising its profit figure for 2018/19 but it made a ‘very encouraging profit’.

He denied that the reduction in equity partner numbers was part of a strategic review: ‘People come and go.’ The firm added five laterals to its ranks this year and promoted six to its partnership but losses included its head of construction and projects Dan Presto, who moved to Fieldfisher alongside fellow partner David Thorne in addition to a team of five associates.

The firm recently announced an official alliance with Chicago-based law firm Hinshaw & Culbertson, which will see the two firms work together on pitching and client marketing in the insurance sector as well as collaborating on professional indemnity mandates.

Marco.cillario@legalbusiness.co.uk

Legal Business

Ashurst makes up eight in the City amid reduced global round as DAC Beachcroft mints 19, RPC six and TLT four

Ashurst makes up eight in the City amid reduced global round as DAC Beachcroft mints 19, RPC six and TLT four

Ashurst has promoted 21 partners globally, including eight in London, after a slightly reduced promotion round which saw Australia and the UK pick up the lion’s share of new partners. DAC Beachcroft, meanwhile, promoted 19 to partner in a significantly bolstered global round while RPC minted six in the UK and TLT promoted four.

In London, Ashurst promoted corporate lawyers Braeden Donnelly, Gaby Jones and Aaron Shute. In tax, meanwhile, the firm promoted Tim Gummer and in competition the firm made up Steven Vaz. Tim Edmonds and Nicholas Hilder were also promoted in global markets and projects respectively, while Emma Johnson was made a disputes partner.

The round is good news for the firm’s diversity numbers, as the promotions will see 25% of the firm’s partnership be female as of 1 May when the promotions take effect.

Overall promotion numbers are marginally down on last year, when the firm made up 24 lawyers globally, including nine promoted in the City. Australia made up the majority of this year’s promotions with nine new partner, while one partner apiece went to Germany, France, Hong Kong and UAE.

Ashurst global managing partner Paul Jenkins commented: ‘The firm is delivering an impressive level of performance and this has enabled us to make a good number of promotions across our offices and practices.’

DAC Beachcroft, meanwhile, announced today (30 April) a significantly increased promotion round. Nineteen new partners have been made up at the firm, an increase of 11 from last year. Four of the new partners are in the City, three of which are in insurance litigation, with the fourth in claims solutions. In the regions, the firm made up four lawyers in Leeds, three in Bristol, two in Newcastle and Birmingham and one in Manchester. Abroad, the firm promoted a single lawyer in Dublin, Madrid and Mexico City.

RPC also announced its promotion round today, with six new partners made up in the UK across its London and Bristol offices.

Commercial lawyer Charles Buckworth, IP lawyer Ben Mark, corporate lawyer Peter Sugden, litigator Alan Williams and tax disputes lawyer Robert Waterson were all made up in London. Professional indemnity lawyer, Rachael Healey, was minted in Bristol.

Finally, TLT has made four partner promotions, down from last year’s six. Commercial lawyer Kuldip Dhanoya, regulatory lawyer Duncan Reed, corporate lawyer Nina Searle and housing lawyer Shazia Bashir were all promoted this year.

thomas.alan@legalease.co.uk

Ashurst partner promotions in full:

 

Anita Choi – Corporate, Sydney

James Clarke – Dispute Resolution, Melbourne

Gerrit Clasen – Corporate, Frankfurt

Rebecca Cope – Digital Economy, Sydney

Yvonne Cross – Projects, Dubai

Jacques Dabreteau – Projects, Paris

Madeleine de Garis – Global Loans, Melbourne

Braeden Donnelly – Corporate, London

Tim Edmonds – Global Markets, London

Melissa Fraser – Competition, Sydney

Tim Gummer – Tax, London

Nicholas Hilder – Projects, London

Emma Johnson (née Martin) – Dispute Resolution, London

Gaby Jones – Corporate, London

Caroline Lindsey – Projects, Perth

Dean Moroz – Investment Funds, Hong Kong

Aaron Shute – Corporate, London

Elissa Speight – Employment, Canberra

Julia Sutherland – Employment, Perth

Lynda Tully – Corporate, Melbourne

Steven Vaz – Competition, London

DAC Beachcroft partner promotions in full:

 

Sophie Lawless – Claims Solutions, Birmingham

Kevan Smith – Claims Solutions, Birmingham

Stan Campbell – Real Estate, Bristol

Sara Eaton – Clinical Risk, Bristol

Louise Wiltshire – Healthcare Regulatory, Bristol

Niamh McKeever – Professional Liability, Dublin

Jeremy Bennett – Claims Solutions, Leeds

Shruti Brockett – Business Services, Leeds

Charlotte Le Maire – Claims Solutions, Leeds

Paul McGough – Healthcare Regulatory, Leeds

Sarah Crowther – Insurance Litigation, London

Olu Dansu – Insurance Litigation, London

Andrew Sheppard – Claims Solutions, London

Toby Vallance – Insurance Litigation, London

Pilar Rodríguez – Insurance Litigation, Madrid

Morgan Nash – Claims Solutions, Manchester

Emma Bowens – Claims Solutions, Newcastle

Dawn McIntosh – Clinical Risk, Newcastle

Salvador Enrique Urbano Tejeda – Insurance litigation, Mexico City

RPC partner promotions in full:

 

Charles Buckworth – commercial, London

Ben Mark – intellectual property, London

Peter Sugden – corporate, London

Alan Williams – commercial litigation, London

Robert Waterson – tax disputes, London

Rachel Healey – professional indemnity, Bristol

TLT partner promotions in full:

 

Kuldip Dhanoya – commercial

Duncan Reed – regulatory

Nina Searle – corporate

Shazia Bashir – housing

Legal Business

‘A third way’: Taylor Wessing enters alliance with West Coast leader Wilson Sonsini

‘A third way’: Taylor Wessing enters alliance with West Coast leader Wilson Sonsini

Marco Cillario assesses Taylor Wessing’s alliance with Silicon Valley royalty Wilson Sonsini as RPC forges US insurance partnership

While the issue of securing a meaningful US footprint for many UK-bred firms endures, Taylor Wessing UK managing partner Shane Gleghorn claims his firm has found the way to gain transatlantic coverage without a complicated merger.

Legal Business

Lead sponsor message – RPC: The essential ingredients

Lead sponsor message – RPC: The essential ingredients

James Miller, RPC’s managing partner, looks at what makes the high performers in this year’s GC Powerlist

Vision, purpose, focus. In my experience as a managing partner, these are essential ingredients for high performance organisations; essential ingredients for high performance teams; and essential ingredients for high performance individuals.

Legal Business

Chicago firepower for RPC as insurance team secures formal US tie-up

Chicago firepower for RPC as insurance team secures formal US tie-up

RPC has announced its insurance practice will form an official alliance with Chicago-based law firm Hinshaw & Culbertson.

The partnership will see both firms deepen their existing relationship in the insurance sector, with talks regarding a formal alliance developing throughout January. The firms will now work together on pitching and client marketing as well as collaborating on professional indemnity mandates.

RPC insurance head, Simon Laird, told Legal Business: ‘This is very much an insurance sector play. Our clients have a big US dynamic and it’s somewhere we wanted to be more strategic. This is coming off the back of extensive client feedback and we chose Hinshaw because of the quality of conversation we had with them.’

Hinshaw & Culbertson is a national firm with 21 offices across the US, including New York, Massachusetts, Florida and California. Like RPC, the firm has a strong insurance offering and provides the UK firm with an entry point into the more mature market in the US. The American outfit appointed a new chairman last week, with Peter Sullivan taking the helm.

‘We have been working together for a while with discussions taking place over the last 12 to 18 months,’ Laird continued. ‘This is not an exclusive thing – there was not a day where we decided to stop and do something differently – things have just progressed and will continue to progress moving forward.’

The alliance makes RPC the latest insurance-focused firm to develop its US presence over the last two years, with Clyde &Co, HFW and Kennedys all having made moves. Taylor Wessing, meanwhile, entered an alliance with West Coast leader Wilson Sonsini last week with a tech-focused relationship.

The announcement follows RPC’s financial rebound last year, when profits increased 10% to hit £112.7m while net income rose to £28.9m, an improvement on the firm’s disappointing 2016/17.

thomas.alan@legalbusiness.co.uk

Legal Business

Life during law: Jeremy Drew

Life during law: Jeremy Drew

My mother was always convinced I was going to be a barrister. She used to watch TV dramas involving barristers. My father, a much more practical man, was desperately trying to convince me I should do a subject that was useful. So I went into the law and really enjoyed it.

I started at Edwards Geldard, one of the ‘big four’ in Cardiff. I joined the IP group because I loved the tech side. Contentious and non-contentious surrounding tech: being paid to do what I enjoyed seemed amazing.

Legal Business

Enterprise GC 2018: Tumbling into crisis

Enterprise GC 2018: Tumbling into crisis

Corporate crises are on the upswing. A faster-paced R&D cycle, improved but riskier technology, 24-hour news… the list of triggers goes on. But our understanding of such events has not always evolved at the same pace. We speak of a crisis as a single incident but, in reality, a chain reaction will likely ensue – and no sooner than one element appears under control, another pops up.

A tumble into crisis

Let us imagine a company that is consumer-facing and has a large, warehouse-based workforce. Imagine it makes toys, sells them online and is called ‘Tumble Toys’. Speed and efficiency in dispatching little Billy or Betty’s heart’s desire is one of its market differentiators – its marketing campaign features a gorilla called Tumble, who makes his way through various perils to ‘tumble’ into the child’s house in various amusing ways. As with many companies, Tumble Toys has outsourced warehouse staffing to a third party.

Legal Business

RPC’s profits rebound amid 10% revenue growth after consulting arm produces ‘good results’

RPC’s profits rebound amid 10% revenue growth after consulting arm produces ‘good results’

RPC has followed up on last year’s disappointing financial performance with a 10% rebound in profits as revenue hit £112.7m.

The rise in net income to £28.9m was coupled with an 8% increase in profits per equity partner (PEP) to £348,000. The 2017/18 financial year was an improvement on last year’s modest 2% revenue growth, which resulted in an 11% drop in PEP to £322,000.

Managing partner James Miller pointed to good results for the firm’s insurance management consulting arm, which last year reported a loss of £2.6m after receiving substantial investment from the partnership.

Speaking to Legal Business, Miller said there had been some one-off costs associated with setting up RPC Consulting, launched in 2015, but he was ‘absolutely delighted with its performance’ and ‘without a shadow of a doubt’ it would generate profits in the year ahead.

He said the firm’s performance had been ‘uniform across all our main groups’, with its core litigation practice bringing in around 70% of the revenue. ‘If there is a significant insurance dispute the likelihood is we’ll be involved.’

The firm’s Asian business in Hong Kong and Singapore contributed about 15% of the revenue, with London and Bristol bringing in the rest.

Global headcount was flat at 360 lawyers and 83 equity partners compared to last year’s 355 and 82. The firm’s top of equity now sits at £1.2m and the bottom at £185,000, both up from £1m and £175,000 in 2016/17.

Miller struck a cautiously optimistic tone looking at the year ahead, saying the outcome of Brexit and the cost associated with complying with GDPR posed a challenge to every business.

marco.cillario@legalease.co.uk

Legal Business

Sponsored firm profile: RPC

Sponsored firm profile: RPC

A decade ago RPC hardly featured on the radar of hard-hitting City litigation firms. It is now one of the largest and most successful disputes firms in the City.

Tom Hibbert, global head of commercial disputes, concedes: ‘Seven to eight years ago were we an obvious choice for big-ticket commercial and financial litigation? Probably not.’ Hibbert, who joined the firm in 2009, has overseen a remarkable transformation, particularly on the commercial and banking disputes side of what is a wide-ranging disputes portfolio.

Legal Business

Sponsor message – RPC: Diversity on the agenda

Sponsor message – RPC: Diversity on the agenda

James Miller, RPC’s managing partner, highlights the common theme of diversity in this year’s GC Powerlist

The best teams are founded on diversity. And by diversity I mean diversity of thought, diversity of experience and diversity of leadership, as much as anything else.

If ever there was a time to reflect on the importance of diversity – in all its forms – in the era of #MeToo, #TimesUp and the gender pay gap, that time is now. Irrespective of whether studies show that greater diversity delivers greater performance – they do – ensuring we run balanced teams and organisations that offer equal access and equal opportunity is simply the right thing to do as human beings.