Legal firm reports record revenue
Addleshaw Goddard merger ‘exceeds expectations’
John Joyce and Malcolm McPherson
Law firm HBJ Gateley’s merger with Addleshaw Goddard ‘far exceeded expectations’, according to Malcolm McPherson, senior partner in Scotland.
Addleshaw Goddard posted record global revenues of £242million for 2017/2018, representing a growth of 23% on the previous year.
An £86million profit marked the fourth consecutive year of profit growth for the legal firm which has three offices in Scotland – representing an increase of 36% compared to the previous financial year.
In Scotland, following the merger with HBJ Gateley in June last year, turnover growth approached double-digits relative to HBJ Gateley figures. Regional success was underpinned by a number of high-value mandates completing across Scotland’s four key divisions.
Stand out work involving the Scottish practice included, acting for the shareholders of QTS Group in its £80m disposal to Renew Holdings and advising Cairngorm Capital during its acquisitions of Thornbridge Sawmills, North Yorkshire Timber and Rembrand, It also worked with Dawn Homes in its c.£20m sale to Springfield Homes.
Activity was further bolstered by significant growth in the firm’s Scottish banking team, as well as a number of key partner appointments.
Mr McPherson said: “The firm’s 2017 merger has far exceeded expectations, and the success of the integration underpins the revenue growth we’re seeing in the latest figures.
“The results are testament to how well the team has transitioned into the enlarged practice.
“Overall, the legal team in Scotland has grown by 17% since the merger and will continue to expand as we look to substantially strengthen our service offering – taking on new lateral hires and implementing new technology – in our Scottish offices.”
Across the firm’s international network of offices and ongoing investment in people and infrastructure, a total of 30 new partners were appointed, both laterally and internally. The implementation of Intelligent Delivery – a strategic move to improve resourcing and process through workflow management and technology has also played a key role in growing revenues.
John Joyce, managing partner, Addleshaw Goddard said: “After another excellent year, income is now nearly 50% greater than 2013, continuing the upward trajectory of the last five years in terms of higher revenues, improved profitability and stronger cash position.
“This has been driven most recently by our successful expansion into Scotland, ongoing investment in priority sectors and global infrastructure as well as in the further development of our Intelligent Delivery model, all of which is helping us to better support and service clients.
“Alongside new mandates and panel positions, it is particularly pleasing to see organic growth in key areas such as corporate and infrastructure which we will look to build out further this year, helped by the success we have enjoyed in adding substantially to the strength in depth of our partner team in the UK and internationally. They are all key developments and confidence has never been higher.
“The firm’s platform has never been better and with the platform we have created we retain huge ambition to build further on it.”