Law firms post record returns

East Anglian heavyweight Mills & Reeve has hit its 25 million turnover target a year early amidst a string of firms announcing annual results.

In 1997, the 16 million firm laid plans to grow by 56% by June 2001 as part of a four-year plan to get big enough to compete in the consolidating legal market.

However, it achieved the mark this June.

Profits per partner this year ranged from 118,000 to 158,000, with an average 152,000 for its 59 partners - an increase of 17,000, or 12.5% on last year.

A Mills & Reeve spokesman attributed the results to significant lateral hires in its London office - which only opened in February 2000 - its 1998 acquisition of the Lewington Partnership in Birmingham, and growth of the professional indemnity market.The firm now plans to take its Cambridge-based hi-tech practice to 'a higher platform and develop it as a national specialism'.

Meanwhile, City firm Stephenson Harwood (SH) has topped the 50 million turnover mark with an 8% growth in fees to 50.3 million; this represents a 25% rise in five years, which will be seen as below average.

Several high-profile partners have also left in that time.An SH spokesman said the firm is very pleased with the results, which he attributed to 'hard work'.

'Of course we've lost a lot of people; what is important is that we look at the facts.

It is true that in the last two years, 12 partners have left the firm but we have had eight partners join.'

The spokesman said 2000 marks the start of a three-year plan which involves changing from a lockstep to a merit-based pay system.

'There would be some people whose personal ambitions were not in line with the partnership's collective future, and some people who did not service the firm well in terms of generating revenue and profit,' he said.

North west law firm Davies Wallis Foyster has announced a record 17% increase in fee income to 15.2 million.

Business development partner Nigel Wallis said profits have also increased 'in line with partners' aspirations'.

Also reporting record profits is Birmingham-based Martineau Johnson, which saw turnover rise 25% to 14.7 million, resulting in profits per partner of 190,000.

Martineaus has now decided to open a London office, headed by banking litigation partner Heather Leeson, who has joined from Edge Ellison.

Martineaus is not planning major expansion in London but senior partner Michael Shepherd said he hoped the office will 'further grow our partnership with Lloyd's and develop other opportunities with banks and other financial institutions'.

Anne Mizzi