finance 25
Running a successful legal practice ... but could it be more profitable?
Legal expertise is invaluable but it doesn‘t necessarily mean that law firms are run in the most efficient and profitable way, says HWB‘s Gary Brown, specialist accountant to law firms
Tough changes to the rules directed at law firms and their financial transparency systems have only further complicated the business of running a successful legal practice.
At the same time, the economic slump continues to squeeze fees and margins and make business harder to come by. As a result, now could be the time for a shift in the way they think about their businesses, which may necessitate specialist advice.
Our team of specialists in legal businesses are regularly being approached by solicitors curious to see how they can operate more efficiently and maximise profits.
We have specialist accounting models available to us that can transform the way a legal practice operates, catapulting it into enhanced profitability.
Many of the key drivers in the business can be flexed to see what it does to the underlying profit.
We can also help by assessing the impact of changing the structure of the business.
It‘s about adding value with a pro-active, ‘what if?‘, approach and freeing partners up to focus on what‘s important – delivering quality advice to clients.
In our experience many
partners are rightly focused on their clients‘ needs but at the expense of time spent setting out a sound strategic plan for their own practice. What would be invaluable is a route map of
Southampton FC celebrates first profit without player trading
In its first six months back in the Premier League Southampton FC made a net profit of a little under £1 million.
Revenue, under the guidance of executive chairman Nicola Cortese trebled during the period from July to December 2012 to more than £33m, compared to a turnover of under £9m for the 12 months up to June 2009. Turnover for the 2010- 11 financial year, when Saints won promotion from the third tier of English season, was £13.37m.
Total investment since the Markus Liebherr takeover in 2009, is nearly £38m. Saints‘ parent company Southampton Leisure Holdings previously entered administration. On Liebherr‘s death in 2010, the ownership of the shares held in DMWSL 613‘s name passed into probate, where it remains.
Cortese, who paid around £5.3m in player and staff bonuses on winning promotion to the Premier League, has done well to get the wages paid to turnover ratio to
59%, a huge improvement on previous management at St Mary‘s. In the 12 months to the financial year ending June 2008, Saints‘ wage bill reached 81% of turnover as huge salaries were given to players struggling to keep the club in the Champonship.
Full club accounts, covering the 2011-12 season in the Championship, were due to be lodged with Companies House as The Business Magazine was going to press. However, Saints‘ chief financial officer Gareth Rogers‘ full statement on the club‘s interim financial results for the Premier League, and the accounts for the 2011-12 season, said: ”Our first six months in the Barclays Premier League shows the dramatic impact promotion has had on the Club. However, the significant increase in turnover has not deterred us from our stated aim of financial prudence in the top division.
”I am delighted to report the Club‘s first profit without the aid of
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – APRIL 2013
player trading since 2005 which demonstrates that prudence in football can be achieved while significant investment, both on and off the field, is still being made. Our wages to turnover ratio has also been reduced significantly and we strongly link remuneration to performance.
”Another pleasing aspect is that non-broadcasting revenues are up across the board, representing a culture shift in the way we do business as a club. This is vital for our continuing success as, in the long term, our aim to challenge and compete with the top clubs in the division cannot rely solely on broadcasting income.
”Overall, these are excellent results and back up the full-year results from our promotion season in the npower Championship which was achieved on an underlying loss of only £2.4m, significantly down from the £11.5m loss that promotion from League One resulted in.”
Radcliffe & Co opens new office
Hampshire-based independent financial adviser Radcliffe & Co has expanded and opened a new office in Winchester.
Already established in the Southampton business community, the firm has been in operation for more than 50 years and is looking to replicate this success with its new venture. The new office, at Southgate Street, will provide a broad range of services to businesses and high-net-worth individuals including: investment advice, mortgages, pensions, tax and financial planning.
Managing director Neil Igglesden said: ”During the past few years, we have experienced a growing need for our service in Winchester and its surrounding areas. Thanks to a lot of hard work and dedication, this initial interest has grown steadily and now necessitates a permanent location for us.”
Originally from Winchester, Igglesden will head the office and long-term plans include growth across its services and recruitment.
www.businessmag.co.uk
where the partners would like the firm to be in one, two or five years‘ time.
Once a strategic plan is in place, we can ensure that it is implemented and regularly monitored against targets.
Asking for specialist advice might go against the grain, but can you afford not to?
Details: Gary Brown or Geoff Rhodes 023-8046-1200
www.hwb-accountants.com
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