Long-term strategy pays off

Jun 27 2007 By Iain Laing, The Journal

Law firm Watson Burton has announced flat revenues for the past 12 months as the amount of compensation work for former miners dried up.

But the Newcastle firm, which has 360 staff, is opening up new business streams and building up the work coming from its new offices in Leeds and London.

The firm saw its revenues leap up by a massive 42% in 2005/6 to £22.7m and the figures stayed the same in 2006/7 after its coal health work dropped from £4m to £1m in line with national trends. Profit per equity partner, or the average profit attributed to each of the firm's equity partners, was £220,000.

And the firm was keen to stress that its long-term strategy of focusing on commercial law has brought rewarding results. Property growth is 21%, corporate 12%, construction 18% and employment 42% across the firm's three offices. This follows year-on-year growth in each of the core departments for the past four years.

Rob Langley, senior partner, said: "This has been an excellent year for Watson Burton. We have opened an office in London, which is an exciting expansion for the firm, consolidated the strengths of our commercial departments in Newcastle and Leeds and successfully absorbed the planned reduction of personal injury work to enable further investment in the future of the firm.

"The growth of our core departments is exceptionally strong. They build on years of substantial growth, and underline the commitment and skills of our fee-earners. We planned for this year's results and I am pleased with the outcome, which puts the building blocks in place for further growth in 2008."

He said that the company's new London office, the first permanent base to be established by a North-East law firm, now had a dozen staff and was building a strong commercial property portfolio.

And he said that the Leeds office had continued to grow strongly in its second year and now had 45 staff. The office acted for 14 plcs in the last 12 months, including Countrywide, Austin Reed Group, Albion and T H Global.

The head office was also moving into new areas including sports law and has clients including Everton, Watford and Milwall football clubs. Rob Langley said: "This has been a year of consolidation following two years of rapid geographical and departmental expansion.

"The spectacular results of our core areas show that our long-term strategy has proved to be right for the firm and its clients.

"We will build on our success in key areas to strengthen Watson Burton even further in 2008."

The firm's figures come within weeks of the city's other largest firms. The region's largest law firm Dickinson Dees, which now has 870 staff, saw its turnover rise 17% to £56m.

Ward Hadaway, which has 362 staff, said turnover had grown by 16% to £25m. It said it expected to create another 36 jobs this year. PEP rose 10% to £405,000 in the year ending April 30 2007.