SJ Berwin posts near-50% PEP drop as turnover falls by 14%
SJ Berwin has posted a 49% partner profits drop, one of the largest falls in profitability recorded by a UK top 50 firm this year. The decline in profits per equity partner (PEP) from £801,000 to £410,000 came on the back of a 14% drop in turnover from £215m to £184m during the year. The firm said the steep drop-off came as a result of the firm's strong focus on transactional areas adversely affected by the financial crisis; in particular corporate, finance and real estate.
July 28, 2009 at 12:03 PM
2 minute read
SJ Berwin has posted a 49% partner profits drop, one of the largest falls in profitability recorded by a UK top 50 firm this year.
The decline in profits per equity partner (PEP) from £801,000 to £410,000 came on the back of a 14% drop in turnover from £215m to £184m during the year.
The firm said the steep drop-off came as a result of the firm's strong focus on transactional areas adversely affected by the financial crisis; in particular corporate, finance and real estate.
Senior partner Jonathan Blake said: "It clearly is a pretty substantial decline. It reflects the fact that we are very reliant on our strong transactional practices which account for around two-thirds of our business. The credit crunch affected these areas badly, so we were affected by this."
He added: "We are disappointed with the results. They are not acceptable for a firm with our level of ambition. We will focus on improving these results in the future by looking at our areas of strength and deepening our client relationships as well as increasing efficiency and looking at costs."
The firm has recently implemented a flexible working scheme for associates in transactional departments.
Associates have been given the option of a sabbatical, unpaid holiday or reduced hours at reduced pay. So far, 143 have opted to take part in the scheme, with the reduced hours option of working nine days every a fortnight receiving the most take-up.
Blake said: "What we are trying to achieve is a reduction of costs without a reduction in people until things recover. I would stress that it is voluntary and something that associates brought up before we had thought about it ourselves."
The news comes as it emerged that managing partner Ralph Cohen has taken a sabbatical over the summer, returning in September. Corporate partner Rob Day has taken over as interim managing partner in his absence.
SJ Berwin said Cohen's sabbatical was in line with the firm's normal sabbatical scheme which enables partners to take an extended holiday after a certain number of years with the firm. Real estate partner and graduate recruitment co-head Bryan Pickup has also taken a sabbatical over the summer.
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