First results published by Stronachs show slide

Published on Thursday 8 October 2009 21:28

STRONACHS, a law firm based in the north of Scotland, yesterday reported its first set of annual results in 200 years, showing a slide in turnover and profit per partner.

The firm incorporated as a limited liability partnership last March; previously it was not required to publish such figures.

Stronachs' 15 partners – plus one who works half the year – shared an average profit of 176,000 compared with 244,000 last year.

Its highest-paid partner – presumed to be managing partner David Sheach – received a payout of 360,000, down from 493,000 in the previous year.

The results show turnover for the year was 8.1m against 8.7m in the year to May 2008. Pre-tax profit fell from 3.9m to 2.7m.

In a statement it said: "Although our equity profits were down on last year in common with many professional services firms, we nevertheless enjoyed a satisfactory result for the year and we again closed the year with a large undrawn overdraft facility, substantial cash balances and free of long-term debt, other than working capital balances maintained by members."

The firm, which employs 109 people, said it had hired three partners in the past year, including an agricultural law specialist, Hamish Lean, plus Mark Stewart, who specialises in wealth management, and Malcolm Donald, who specialises in corporate and energy work.

The firm said the strength of its working capital position and "profitability compared to other law firms" allowed it to "invest for the future".

Sheach added that the firm has been involved in a number of corporate deals, mainly in the oil and gas sector.