Pay cut for Dundas & Wilson lawyers as investment hits profit

By PETER RANSCOMBE
Published on 21/07/2012 00:00

PROFITS pocketed by partners at Scotland’s largest law firm have slumped from £325,000 to £210,000 following heavy spending on computer systems and office refits.

Dundas & Wilson posted a profit of £16.2 million for the year to 30 April, down from £25m in the previous 12 months, after a restructuring in April that saw 28 posts being axed.

Cash was also pumped into opening an office in Aberdeen, refits for its Glasgow and London bases and hiring more banking and litigation staff.

Turnover dropped to £54.5m from £62m, “reflecting the reduced activity from some of our key clients”, the firm said.

Joint managing partner Allan Wernham said the results were “obviously disappointing”, with revenues dropping especially sharply during the second half of the firm’s financial year.

He said the current financial year “has started well”, adding: “Our profit margin – which enables us to reinvest – is a very healthy 29 per cent.”

Wernham and fellow managing partner Caryn Penley were elected to the top job last month and will formally take up the reins on 1 August.

He said they had already started to innovate, including the launch this week of a “legal services unit”, which will use paralegals instead of solicitors to offer cut-price work.

Dundas & Wilson reclaimed its crown as Scotland’s largest law firm by revenue following the takeover of arch rival McGrigors by London-based Pinsent Masons.

D&W is likely to have kept the top spot, although confirmation won’t come until accounts are published by nearest rival Maclay Murray & Spens, whose year ends on 31 May.

Brodies, which has chosen to focus its attention on Scotland rather than opening a London office, has more solicitors in Scotland than its larger rivals.