UK Top 50 2016-17: Clydes CEO Hasson on global expansion, partner cuts and mergers
Clyde & Co chief executive on the rise of natural catastrophes and the fall of the marine insurance market
September 22, 2017 at 04:32 AM
6 minute read
For this year's UK Top 50, Legal Week has spoken to law firm leaders across the market for their take on the key trends from 2016-17, as well as their plans for the year ahead. In this Q&A, Clyde & Co chief executive Peter Hasson discusses the firm's solid performance in a challenging market for insurance-focused firms
How was your year last year? "It was a relatively difficult year, economy-wise, with uncertainty around Brexit and Trump, and there was also continued client pressure to improve efficiency and value. Against that, we managed to grow revenue, taking us past £500m for the first time, and we increased profitability and maintained PEP. From that point of view, it was a continuation of what we have been delivering over a period of time.
"Globally, the insurance market is okay, but it is not a stellar time. The marine market has been the poorest it has been – it is at the bottom of the cycle. Our markets haven't been favourable, but our strategy goes to show that you can still make it work.
"This is the first year that we have seen a full year's contribution from our Simpson & Marwick merger in Scotland. We have made major investment in a new financial management system and developing our case management, because clients are making demands for better flow of information, and we need to be able to look closely at profitability information. We have also been expanding internationally, particularly in the US. We have also seen interest in new markets, so Latin America is emerging; we opened in Mexico, and the Miami office was similarly focused. We have also been hedging our position post-Brexit with an opening in Germany.
"Over a five-year period we have been growing at 12% compound. If we keep on, we will be starting to dominate our sectors, which is what we want to achieve as part of our strategy. A solid year from my perspective."
More generally, how do you think UK law firms have performed? "My impression is that it has been quite patchy, with different levels of performance from firms depending on the economy they were exposed to. I suspect we will be at the top end – I am not seeing anyone that has done spectacularly well in terms of revenues.
"The market conditions are being felt across the piste. If you happen to have been exposed to big transactions, you may have done quite well. For us, the key is steadily building the business over the years. We are pleased that last year we grew in every region that we have business in – our plan has always to be that we are making progress across the board, rather than being reliant on one practice."
Has currency inflation effected your results? "Currency movements added 5% to our revenue in sterling. Sterling flatters growth this year for everybody. That is something you have to be aware of, but the critical bit, even without the currency bit, is that we still had 9% growth. There is a positive element to that, in that doing work internationally from a UK base is now more cost-effective for clients."
Why do you think so many firms are cutting back partner and lawyer numbers? "It is a tough marketplace and people have being trying to reduce costs and improve profit levels. We are up 40 partners year on year, and the ability to increase partner numbers and keep profits at the same level is a critical factor in our expansion and success.
"We are very clear that we are focused on core sectors, people who build, move and dig up things, and our absolute core sector – insurance. We want to be the leading player in those sectors on a global basis and that requires having the right people in the right places. That drives us, rather than focusing on how to improve PEP. If you do the things that are right for your business, the results follow."
Which types of firm do you think have done well this year? "The firms that have done well are the firms that are clear on what they are trying to do. There is a long-term pressure on firms in the UK, where they are stuck trying to work out their strategy. We have decided that we are going to focus on core industries, and we are putting the office network in place to make sure we are where the clients need us. If you are unsure about what you are doing and are caught with an inconsistent client base, I think those are the firms that are coming under pressure and are struggling to drive revenue growth. They are the people that are cutting partner numbers to drive the firm from a financial viewpoint.
Why have mergers not paid off for some firms? "Merging is not a strategy, it is a means to a strategy, so if you are clear about what you are trying to achieve it can accelerate your position in the marketplace. Often, merger is seen as a panacea, where firms that are struggling come together. It is hard to judge the success of a merger in a year or two because there is always a big integration job; anyone who thinks they are going to merge and suddenly see marvellous results is doing it for the wrong reasons. Our merger with Barlow Lyde & Gilbert was probably one of the most successful I have seen, but you can only really judge that five years on."
What are the prospects for 2017-18? "There is still a lot of uncertainty around, and how clients respond to that will determine how the world moves. The real drivers this year will be the long-term trends like pressure from clients, demand for efficiency of service, demands to service clients in key locations. Rather than short-term views of markets. I think it will remain a tough market for the legal industry and particularly UK based firms.
"On the insurance side there has been an increase in natural catastrophes, which have been through a quiet period. You can see in Grenfell and Texas an increase in the level of insurance claims, and with insurance claims often litigation follows."
For more, see:
- A&O managing partner Andrew Ballheimer on why clients are 'crying out' for truly global firms
- Linklaters managing partner Gideon Moore on mergers, clients, Trump and Brexit
- 'We were unlucky, but we learned a lot' – DLA Piper's Levine on that cyber attack, Brexit and office closures
- UK Top 50 2016-17: Eversheds Sutherland's Lee Ranson on long-sought mergers and tech priorities
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllCovington Swipes Mishcon Insurance Disputes Head for New Practice Launch in London
3 minute readAsia Pacific Hires: Global Firms Kick Off Q4 with Flurry of Team Hires Across the Region
10 minute readCorporatizing Law: How This Law Firm Leader Plans to Build a Big Legal Business
5 minute readTrending Stories
- 1Judge Grants Special Counsel's Motion, Dismisses Criminal Case Against Trump Without Prejudice
- 2GEICO, Travelers to Pay NY $11.3M for Cybersecurity Breaches
- 3'Professional Misconduct': Maryland Supreme Court Disbars 86-Year-Old Attorney
- 4Capital Markets Partners Expect IPO Resurgence During Trump Administration
- 5Chief Assistant District Attorney and Litigator Shortlisted for Paulding County Judgeship
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250