A focus on improving its cash position has helped profits per member to rocket at international law firm DAC Beachcroft, its provisional results revealed today.
The firm's total turnover for the year to April came in at £202m, up two per cent on the year before, while profit before tax rose to £35m, an increase of nine per cent.
However, the firm's profit before tax per member is the figure that really stands out in the accounts, increasing by 21 per cent to £358,000.
Why it's important
The law firm has steadily been working towards reducing its lock-up days, which can be described in basic terms as a measure of unbilled hours. This year, the firm reported 143 lock-up days, a fall of four per cent, which has also helped to cut the firm's net debt by £5m to £20m.
What DAC Beachcroft said
"This is an excellent set of results for us and we are very pleased with them," said David Pollitt, DAC Beachcroft managing partner. "They reflect our focus on performance improvement and are in line with our strategic drive to create sustainable value.
"Each of the key financial metrics shows further improvement with record turnover, a significant increase in profitability and profit per member, ongoing improvement in working capital management and the further significant reduction of our net debt. Overall, they provide a strong platform for our future ambitions."
Treating a healthy cash position as a priority has clearly worked well for the firm this year