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Stewarts Law is targeting £100m revenue by 2022, despite turnover falling by 20.2 per cent last year after several of its most prominent cases ended in 2016/17.
Turnover fell back down to £62.4mn from a high of £78.1m. Double-digit growth at the firm in 2016/17 saw its average profit per equity partner (PEP) outstrip the magic circle at £2m, though that figure fell in the last financial year by 27.8 per cent to £1.4m. Net profit further decreased from £36.3m to £28.3m.
The firm received a significant upturn in its financials after involvement in several major banking cases, most prominently the Royal Bank of Scotland’s £4bn rights issue.
Managing partner John Cahill said: “We are pleased to post a solid set of financial results. During the year we have made significant investment in a number of new contingent cases.
“I indicated last year, when announcing a set of record results that our revenue patterns will be ‘non-linear’ and that remains the case.”
Total remuneration to all classes of partner fell from £44.4m to £35.8m, resulting in the equity spread shrinking at both ends. The lowest paid partner at Stewarts took £639,000, down from £968,000, while its highest paid partner received £800,000 less than last year’s £2.4m.
A spokesperson for the firm said: “The breakdown of revenue is drawn purely from litigation and includes an adjustment of £4,035,000 in respect of value recognised on certain contingent work where the income recognition policy applied in our management accounts differs to the statutory financial statements.”
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