DAC Beachcroft's bank loans nearly triple
Bank loans soar as it expands reach in Spain and Latin America while shelved IT project lands the firm with a £2.9m bill
January 29, 2015 at 03:23 PM
2 minute read
DAC Beachcroft's bank loans nearly tripled last year to finance the firm's "strategic growth plan", while its profit was dented by the multimillion-pound cost of an aborted IT project.
The firm's accounts, published at Companies House, showed the firm's total bank loans rose to £24m in the year to 30 April 2014 – nearly triple the £9m it had in loans the previous year.
The firm also reported a reduction in net debt to £30m, down from £39m.
Writing in the accounts managing partner Paul Murray said: "Since the year end, the firm has extended its bank facilities by £15m to assist with the delivery of its strategic growth."
A spokesman for the firm added that the increased borrowing was linked to a "refinancing" that included "implementing a £40m four-year revolving credit facility" and tapping up the partnership's members for £10.2m.
The firm has recently expanded its reach in Spain and Latin America. In December 2013 it merged with Colombian law firm De La Torre y Monroy to form DAC Beachcroft Colombia.
DAC also has offices in Chile and Mexico, as well as associations with firms in Brazil.
The accounts revealed that DAC's operating profit for the year was hit by a £2.9m cost from an IT development project that the board decided was "no longer viable".
In addition, the firm undertook an internal restructure, transferring its claims solution group to DAC Beachcroft Claims Limited in May 2013, which resulted in a one-off tax charge.
After the cost relating to the IT project, the costs from the restructuring and finance costs were accounted for, the total profit available for division among partnership members fell 18% to £25.5m, down from £31m the previous year.
The firm's highest-paid member pocketed earnings of £438,506 in the year, down 3% on the previous year's figure of £450,340.
Staff costs rose 9% in to £109m, up from £99m the previous year as the average number of staff increased 11% to 2,276, up from 2,051 in 2012-13.
However, the average number of members of the partnership in 2013-14 dropped by four to 109.
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