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impressive results for martineau 04/06/2008 Birmingham and London law firm Martineau Johnson has posted an impressive set of results which sees profit per equity partner (PEP) increase by 50% to an average £260k, ranging from £200k to £350k, despite an increase in equity partner numbers.
Fee income also soared by 12%, increasing turnover up to £23.3 million in the year ended 30 April 2008, pushing Martineau Johnson up the PEP league table and on a par, if not better, than other leading law firms.
Managing partner, Bill Barker attributes the firm's success to a number of reasons, as he explained: "Having achieved a 33% increase in gross profit, we have now got the balance right in terms of turnover and costs.
"A thriving culture and investment in high calibre people also means that we are now reaping the benefits of our lateral hires over the last two years. We have recruited some really big hitters in their fields, a total of 14 in addition to the three new partners recently promoted from within the firm.
"We've definitely raised our game over the last few years by being more opportunistic, and this is now paying dividends. This reflects our decision to focus on key chosen sectors including banking, capital projects, education, energy, growth companies/corporate finance and private capital and charities, which all have a projected strong growth.
"Winning new business has been a key factor across all sectors and, in particular significant instructions in respect of banking work. Other highlights saw increases in intellectual property and technology grow by 56%, corporate finance by 38%, banking by 25% and education grew 8%", he added.
The firm advised on almost 200 corporate deals, some of them international, with a total value of £1.8 billion. These included mergers and acquisitions up by 15% - accelerated by the changes in Capital Gains Tax, investment-related transactions and fund raising on the AIM market.
On the commercial disputes management side there was a shift away from construction and property instructions into pure commercial disputes and this area is set to grow further on the back of the credit crunch. Its real estate division is also poised for significant growth, having advised on property transactions with a value of over £1.5 billion in the last year.
Across its markets, Martineau Johnson has been working to expand its international connections in a bid to connect with fast growing economies around the world.
This includes a high profile role in a $241m cross border acquisition with colleagues in the USA.
"In terms of energy and education, for example, there are growing international aspects," said Roger Blears, senior partner.
"Energy and carbon emissions are clearly a global concern and even education is internationally mobile, with UK based universities and colleges setting up campuses in the Far East and elsewhere."
Mr Blears himself has been responsible for the firm's growing links with China, through its work with Guangzhou China-UK Cambridge Venture Park (CUC Venture) and the Yangtze River Development and Corporation Board, which aids firms looking to set up a European base in the UK.
Martineau Johnson continues to play a key role in Multilaw, the international network of legal firms and is also benefiting from its membership of State Law Resources Inc (SLR), a national network of independent law firms across North America.
Looking to the future, Martineau Johnson plans to continue with its chosen sector strategy by developing and investing in those areas where they have been most successful and profitable.
However, Mr Barker believes that the legal sector will not be unscathed from the economic downturn and that the rate of growth will inevitably slow, prompting a more prudent approach to carefully controlling costs.
"I think the future is going to challenge many sectors and we are likely to see a real shift in emphasis in terms of the type of work undertaken. There will inevitably be more restructuring work, and insolvencies and disputes will continue to grow.
"Mergers and acquisitions activity will lessen, although there are still people around looking for good investments and a market which is changing will continue to provide lots of opportunities", he concluded.
For further information please contact William Barker on
william.barker@martineau-uk.com
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