Bumper 12 months: first four practices to publish results reveal jump in turnover

The 2004-05 financial year looks set to be a bumper one for the leading regional and mid-market City firms, as the first four practices to publish their results this week reported double-digit increases in turnover and a surge in profits.


Birmingham and London firm Wragge & Co unveiled turnover of £88.5 million for the year, an 11.5% increase on the previous 12 months. Profits per equity partner hit £300,000 for the first time - a 44% increase on the previous year.


Quentin Poole, Wragges' senior partner, put the improved performance down to the firm's increased work from top-tier private and public sector organisations - it counts the likes of BP, BT, GlaxoSmithKline, Marks & Spencer and HSBC among its clients.


The firm's human resources group delivered the healthiest growth in performance with fee income up by 21%.


Mr Poole said: 'These figures show we are beginning to reap the benefits of a strategy based on relationships, technical and service excellence and maximising our cost advantage. Clients have become sophisticated buyers of legal services and they are voting with their feet.'


Meanwhile, Manchester-headquartered Halliwells unveiled record turnover of £50 million, a rise of 23% on the previous year. Profits per equity partner topped £400,000 and overall profits rose by 15%.


The firm, which now has 100 partners, merged with Liverpool firm Cuff Roberts in January 2005 - of the 23% rise in turnover, the firm estimated that 10% was attributable to the merger and 13% to organic growth.


Ian Austin, Halliwells' managing partner, said: 'This has been the most progressive period in the firm's history. Over the last 12 months we have increased our client base, our service levels, our profitability and our resources.'


East Midlands firm Freeth Cartwright also announced record income of £25.2 million, an increase of more than £3.6 million or 17% from the previous year. Profits shot up by 30% with average profit per equity partner growing from £146,000 to £190,000.


Peter Smith, the firm's chief executive, said: 'We had a solid performance across the board - all departments contributed in excess of their budgeted figures. We have also invested in our people and infrastructure, moving to new premises in Nottingham and Derby.'


City firm Berwin Leighton Paisner was not to be outdone and posted substantial growth for the third successive year. Turnover was £121 million, up by 19% on last year, while profits per equity partner increased by 34% to £570,000 from £425,000 in 2003-04.