Top-50 firm BLM suffered a sharp fall in profits ahead of its acquisition by Clyde & Co last July, newly published accounts show.
The insurance and dispute resolution specialist posted a pre-tax surplus before member remuneration and profit shares of £3.2m in the year to 31 March 2022, down from £11.1m in the previous 12 months. Turnover declined from £96.3m in 2021 to £91m.
Exceptional items totalling £4.1m (2021 £1.3m), which arose from the early surrender of property leases in Manchester and dilapidations, ate into operating profits. BLM’s Manchester staff moved into new premises in 2021.
Overall, however, operating expenses fell by £2m. Staff costs were £3.2m lower as a result of reducing headcount, but this was partially offset by a steep rise in the cost of professional indemnity insurance, BLM LLP’s accounts disclose.
Turnover was adversely affected by the cessation of the government’s Coronavirus Job Retention Scheme, cutting other operating income by £1.7m on 2021.
BLM ended 2021/22 with £4.7m in cash, down from £11m in 2021, and a bank overdraft of £18m due for repayment within a year. The overdraft was repaid in full on the Clyde takeover.
BLM’s top-paid partner (LLP member) received £204,000 in 2021/22, down from £256,000. The average number of members during the year was 54 (down from 56 in 2021).
Clyde & Co’s acquisition of BLM created a combined firm with £700m in revenue, headcount of 5,000, and offices in over 60 cities worldwide.
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