Shoosmiths posts £13.7m profits
Profits are up 25 per cent at law firm Shoosmiths. The firm, which has offices in Nottingham and Northampton, said profits had shot up to £13.7m in its year-end results. The results were revealed as Shoosmiths completed its role as adviser to chocolatier Thorntons, which negotiated a deal to outsource its warehousing and distribution divisions.
Shoosmiths posted an overall income of £87m, which is £3m less than 2009-10. However, revenue was boosted by 5 per cent in the firm's corporate, commercial, real estate and lender services teams.
The corporate team posted a revenue increase of 9 per cent in a year when it completed private equity deals with a deal value of £271.1m.
The firm said the reduction in overall income was anticipated following its change in focus within the firm’s consumer services brand, Access Legal from Shoosmiths, which was launched 18 months ago.
During this time, income levels in the consumer business fell but profitability was maintained, said Shoosmiths.
Andrew Pickin, partner and head of the firm's Nottingham office, said: "This is the firm’s second year of profit growth, and has been achieved through an ongoing review of internal efficiency and a clear focus on client relationships and consistent service delivery.
"It continues to be a challenging market, with more law firms chasing less work at lower fee rates. Like many law firms, we are working hard to adapt to this new environment and it is pleasing to see this reflected in our financial results."
Shoosmiths has also completed leading a deal in which Thorntons has agreed to outsource its warehousing and distribution to supply chain business DHL.
The Alfreton-based confectioner recently announced plans to shed up to 180 of its UK high street stores.
Thorntons will incur about £680,000 in one-off transition costs over the first year of the contract. However, but it is estimated the deal will save at least £5m over the next six years for the chocolatier.
Thorntons also recently took advice from Shoosmiths in a separate agreement to sign committed bilateral revolving credit facilities totalling £57.5m until October 2015. The facilities replaced Thorntons existing £52.5m arrangement due to mature in August 2012.
Shoosmiths has 1,220 staff in eight offices.
