New offices and a recruitment drive were behind a profit fall at London firm Kingsley Napley, according to a results announcement yesterday. In the year to 30 April 2023 the firm said profits fell 6.45% to £14.5m on turnover up 10% to £61.2m.
In the past 12 months, the firm has recruited eight partners to launch a number of new practices, following a year in which it moved to larger offices. The extra cost of this office was expected, the firm said, as was the recruitment drive to expand staff numbers to fill it. Investments in technology also affected profits, as did inflationary pressures. There is now likely to be a pause on new hires while the business allows the investments to bear fruit.
Managing partner Linda Woolley said: ‘Given the ongoing economic uncertainty and inflationary pressures, the last financial year was more challenging than we would have liked.
‘Despite this we saw a further rise in revenue as we continued to invest in our business and our people. In fact, we are already feeling the benefits of our investments, with strong demand for new services such as restructuring and insolvency, tax, and a range of disputes work.’
Kingsley Napley moved into its new offices in Shoreditch in July 2021, consolidating its three previous buildings.
Woolley said the relocation allowed it to ‘start afresh’ after lockdown and came alongside a new brand identity, incorporating the phrase ‘when it matters most’.
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