Bevan Brittan LLP, the leading public services law firm, today announced its preliminary unaudited financial results for the year 2010/11.
Building on its ever strengthening financial performances in 2008/09 and 2009/10, the firm announced the following key points
- Profit margins increased from 22.5% to 23.5%
- PEP increased by 7% to £303k
- Debt reduced by a further £2.8m
- For the second year running the firm has not used its overdraft facility
- Net assets per Partner remaining at over 3 times equity contribution
- Net profit of £8.2m
The profitability achieved in the year also means that, once again, a bonus pool for employees will be distributed on completion of the audit. Its recent round of promotions also means that 20% of its lawyers have been promoted in the past two years.
Commenting on the results, Bevan Brittan Chief Executive Andrew Manning said
"As the leading public services law firm, 2010/11 has been challenging for us, with the change in Government and the steps to reduce the budget deficit through the Comprehensive Spending Review, leading to a series of policy changes and/or delays in decision making that impacted core areas of work - the changes to the Building Schools for the Future programme being a prime example. This, coupled with tough economic conditions in general, and the run off of our decision in preceding years to exit some markets and services to focus on the public services arena where we are market leaders, meant that our revenues for 2010/11 fell by 9% to just under £35m. However, through prudent management of costs we were able to maintain profits above £8m for the third year in succession, and through careful management of our cash flow we have reduced debt and not used our short term borrowing facilities- thereby maintaining the strong balance sheet we have developed over the past couple of years.
We are now achieving profit margins and PEP figures that, at last, compare very favourably to those achieved by the vast majority of our competitors in our markets.
Whilst our markets are set for considerable change over the next few years, providing both threat and opportunity, we are in a strong position to move forward and invest with confidence. I am particularly pleased that we have been able to promote over 20% of our lawyers over the past couple of years and make available bonus pools to reflect their performance, whilst raising our Partners’ earnings back into line with the top quartile of our market, reducing our debt, and growing our client base.
Our recent high profile successes across the full range of our services (projects, commercial, construction, property, litigation & judicial review and employment) confirm how well placed we are to assist clients from both the public and private sectors to respond to the enormous challenges in the public services market."