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DAC Beachcroft has posted a strong set of results for the 2017/18 financial year, showing double-digit growth in turnover and profit as well as posting a record-high in profit per equity partner (PEP) of £530,000.
An 11 per cent increase in turnover from 2016/17 saw the firm rise from £207m to £230m, while a 21 per cent increase in pre-tax profits saw that figure swell from £39m to £47m in a year with managing partner David Pollitt pointing to increased operational efficiency and staying close to the firm’s core sectors as the key reasons for growth.
Among the headline figures, DAC also reduced its net debt for a fifth consecutive year with that figure falling 26 per cent from £19m to £14m.
Speaking to The Lawyer, Pollitt said: “I think these results will enable us to attract more high-quality people and laterals. This is, I suppose, where the PEP figure comes in. Breaking £500,000 is a significant landmark for us and puts us in an excellent place for people to now see us for what we are, which is an excellent platform if they fit into our core sectors.”
In the last three years, the firm has increased pre-tax profits and PEP by 46 per cent and 79 per cent respectively with Pollitt praising the success of DAC’s “policies of prudent financial management”.
Though the firm has experienced impressive growth since 2015, Pollitt was keen to temper expectations for the coming years.
Pollitt said: “We’ve had three years of 20 per cent plus in profit growth and I’m telling my partners not to expect another three years of that. Of course, we’re still aiming for growth in turnover and other key financial metrics. There are some scary times ahead for everyone, not just law firms, which is all the more reason to underpin the growth we’ve achieved.”
On top of the figures, DAC also paid out a record £7.7m in bonuses to its staff marking a 70 per cent increase on the previous year with staff also being given an extra day off at Christmas as a further reward.
In the next 12 months, the firm is expected to exit its Fetter Lane headquarters in London to new premises in Cannon Street’s Walbrook Building.
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