Halliwells
UK 200 RESULTS 2010
Movement since 2009
Turnover (£M):
Profit per equity partner (£K):
Earnings per partner (£K):
Equity spread (£K):
Net profit (£M):
Profit margin (%):
Revenue per fee-earner (£K):
Revenue per lawyer (£K):
Revenue per partner (£K):
Revenue per equity partner (£K):
Total number of fee-earners:
Total number of qualified lawyers:
Total number of partners:
Total number of equity partners:
Total number of female partners:
Total number of female equity partners:
Total number of staff:
Leverage ratio (fee-earners per equity partner):
DOWN
67
0
0
0-0
0
0
117.5
180.1
492.6
1,675.0
570
372
136
40
37
7
848
8.3
In June 2010 national firm Halliwells filed notice of its intention to appoint an administrator, confirming the extent of the financial problems that had dogged the Manchester-headquartered firm for most of the 2009-10 financial year.
These included a turnover drop of 14 per cent, from £77.8m in 2008-09 to £67m for 2009-10, alongside an annual rent bill of around £9m. The latter was exacerbated by the firm taking on 120,000sq ft of space at Spinningfields in Manchester, paying top-of-market rent believed to be £35 per sq ft.
It subsequently distributed a property-related windfall to the then 40 equity partners as opposed to investing it in the business. This was combined with significant debt, including a bank loan, an overdraft facility, non-property leases and £10m members’ capital liability.
The firm suffered a number of partner departures during 2009-10, including those of property head Mike Edge, who exited for Pinsent Masons; healthcare partners Christopher Briggs and Simon Wortley, who moved to Beachcroft; and the majority of its Sheffield insurance practice, which was snatched up by Kennedys.
At the end of the 2008-09 financial year the firm had 42 equity partners and 112 fixed-share, who also contributed capital to the firm. On average these numbers fell to 40 and 96 respectively by 2009-10.
However, the firm did have some successful practice areas, including a profitable insurance business acting for clients such as Axa, Chartis (the rebranded business of AIG UK), NFU Mutual and Quinn, while public sector clients included Liverpool City Council. As a result a number of firms, including Barlow Lyde & Gilbert, HBJ Gateley Wareing and Hill Dickinson swooped on parts of the troubled business, acquiring the majority in July 2010.
UK 200 RESULTS 2009
Movement since 2008
Turnover (£M):
Profit per equity partner (£K):
Earnings per partner (£K):
Equity spread (£K):
Net profit (£M):
Profit margin (%):
Revenue per fee-earner (£K):
Revenue per lawyer (£K):
Revenue per partner (£K):
Revenue per equity partner (£K):
Total number of fee-earners:
Total number of qualified lawyers:
Total number of partners:
Total number of equity partners:
Total number of female partners:
Total number of female equity partners:
Total number of staff:
Leverage ratio (fee-earners per equity partner):
DOWN
83.0
280
120.1
110 - 400
11.8
14
139
209
539
1,976
595
397
154
42
38
8
882
8.45
After a few years of aggressive expansion turnover failed to grow for the second year running at Halliwells. The firm recorded a 5 per cent drop during 2008-09, while average profit per equity partner (PEP) fell by around a third to below £300,000 and the profit margin to just 14 per cent.
It was a difficult year for Halliwells. It made several rounds of redundancies and reorganised its finances in the autumn. This was followed by the unprecedented move of using its property, fixtures and fittings, LLP goodwill and IP as security on an extension of its lending facilities with its bank, RBS.
However, it did pick up some good deals, including corporate partner Frank Shephard and real estate partner Rod Waldie advising JJB Sports on the sale of its gym business. Dispute resolution, insurance litigation, employment and IP experienced decent years.
The firm is known for its ‘eat what you kill’ approach to remuneration and it reduced slightly the proportion of equity partners making up the partnership last year. It has a particularly small equity, with just 27 per cent being part of the club.
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