Profits at Scottish legal firm edge higher despite impact from Covid pandemic
SCOTTISH law firm Harper Macleod booked a small increase in profits in its last financial year despite the adverse effects of the onset of the coronavirus pandemic in the final weeks of trading.
Led by chairman Lorne Crerar and chief executive Martin Darroch, the Glasgow-based firm said in its latest accounts filed with Companies House that it met all of its strategic aims for the year to the end of March 2020. Despite the disruption caused by Covid, “we believe we are very well-placed to make the most of the opportunities which arise now and in the future”.
Turnover for the year rose to
£30.8 million, up from £29m previously. Profits available to distribute to the 69 designated members listed as part of the limited liability partnership came in at £11.1m, up from £11m previously.
“Our guiding key principles to meet the ongoing challenges of the pandemic have been liquidity, solvency and long-term sustainability of the business,” the firm said in its members’ report.
“To deliver on these principles we have: carefully reviewed and reduced our discretionary expenditure; we have utilised the government’s job retention scheme as well as managing overall remuneration costs; and reduced partner drawings to aid cash flow.
“All the evidence to date supports our confidence that we will emerge from this health crisis in a very strong position to meet market challenges and to continue to increase market share.”
The period under review covered the September 2019 acquisition of Wink & Mackenzie, one of the oldest legal practices in Moray. This led to the addition of two partners and 15 staff, further extending Harper Macleod’s reach in the Highlands.
The firm employed an average of 174 lawyers and fee earners during the year across its offices in Glasgow, Edinburgh, Inverness, Thurso, Shetland and Elgin, up from 159 the previous year. The number of administration and support staff also increased from 133 to 141.
Mr Crerar, a co-founder of Harper Maclead, is an advocate for the reform of legal services regulation in Scotland. A member of the Roberton Review advisory group that published its recommendations on this matter in October 2018, Mr Crerar said Harper Maclead continues to back the need for change.