Final Olswang accounts pre-merger reveal profit plummeted by 77%
Olswang, Nabarro and CMS' final set of liability partnership (LLP) accounts reveal finances prior to merger
January 31, 2018 at 06:56 AM
4 minute read
Olswang's operating profit plummeted by 77% in the final financial year before its tripartite merger with Nabarro and CMS Cameron Mckenna.
The firm's operating profit dropped from £35m to £8m during the year ended 30 April 2017, the firm's liability partnership (LLP) accounts have shown.
CMS managing partner Stephen Millar said the figure was "hugely" impacted by onerous lease charges that had to be charged to the profit and losses of that year under statutory accounting rules. He also added that redundancy costs at the firm had contributed to the steep drop in profit.
Meanwhile, the firm's turnover fell by 14% from £112m to £96m during the year.
The accounts also reveal that the average monthly total of LLP members dropped from 99 to 75 during the period.
Almost a third of Olswang's partnership left the firm in the financial year before its merger with CMS and Nabarro, Companies House records have shown.
In total, 28 partners departed between 1 May 2016 and 30 April 2017, equating to 28% of the firm's total partnership, based on its 2015-16 partner count of 101.
Despite the fall in profits, management pay during the financial year increased by more than 20%. Key members took home £6.5m, compared to £5.4m the year previously.
However, the firm's highest paid member saw a slight fall in pay, from £759,000 to £727,000.
Nabarro's accounts for the 2016-17 financial year have also been released, revealing that the firm's pension deficit increased by more than 40% last year, from £12.2m to £17.2m.
The increase comes despite the firm reducing the deficit by more than 50% in 2015-16 from £31.9m to £12.2m.
It paid £4.4m into the scheme in a bid to clear the deficit more quickly than a 19-year recovery plan agreed in 2014, which was meant to see the firm pay in £1.25m each year between 2015-16 and 2018-19.
Millar would not confirm whether the plan to deal with the deficit had changed post-merger, but said the combined firm is "confident" about the arrangement in place.
The accounts also reveal Nabarro's cash position was slashed by more than 50%, from £22.6m to £10.4m.
Meanwhile, the total pay taken home by Nabarro's key management fell from £8m to £5.5m during the year, while its highest-paid member took home £1m during the year, an increase of 6% from £944,000 the previous year.
The firm restructured its management during the financial year, with several members leaving the group.
It reported a slight uplift in fee income in the last financial year, from £129m to £131m, while its profit dropped by 10%, from £46.6m to £41.8m.
Total staff costs at the firm increased slightly, from £46.9m to £50.2m, while its average number of staff fell from 713 to 683.
Meanwhile CMS Cameron Mckenna also filed its final set of LLP accounts pre-merger, revealing its turnover increased by 4% during the last financial year from £263m to £273m.
The firm's operating profit fell slightly from £74m to £71m.
Its highest paid member took home £798,000 compared to £860,000 the year previously, while total management pay remained flat at £2.7m.
The combined firm also released a total turnover figure for the year ended 30 April 2017 of £504m and operating profit of £122m.
Millar said: "The business is performing extremely strongly this year. Every day we gain work as a result of the much bigger platform and bigger spread of client services we can now offer. We're extremely confident."
The merger between the three firms went live on 1 May 2017.
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 AllTrending Stories
- 1Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 2Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 3Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
- 4'It Refreshes Me': King & Spalding Privacy Leader Doubles as Equestrian Champ
- 5Class Action Filed Against Houston Health Savings Account Firm for Allegedly Confiscating Client Funds
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