Brighter times lie ahead, insist leading law firms

Jul 8 2009 by Chris Knox, The Journal

THE North East’s biggest law firms say they are confident of recovering after cutting more than 250 jobs among them in the past year.

Most of the region’s larger firms, all in Newcastle, have responded to falling revenues by cutting jobs as the recession hit their corporate business and commercial property work.

Dickinson Dees has cut 150 workers, Watson Burton axed 55 posts three weeks ago and 10 at the end of last year, Muckle LLP cut 14 jobs last July and Ward Hadaway axed 21 last September.

But the firms say they are now confident they are in a strong position to weather the rest of the downturn.

New figures from Dickinson Dees which were published yesterday show its revenues fell only £1m to £52.4m in the year to the end of March and it said new offices in York and London would continue to operate. It does not expect to cut any more jobs.

Managing partner Jonathan Blair said: “We are taking a cautious approach to 2009-10. We took some tough but necessary action last year to ensure we are in the best possible position going into this financial year.”

Muckle is finalising its accounts for the year to March, but expects sales to be in line with the £9m it recorded last year and said its commercial team had already completed 41 deals valued at £129m this year.

Similarly, Watson Burton said it was “more positive about the market it works in than 12 months ago”. It expects to post annual revenues in line with last year’s £23m.

The firm, which now has about 250 staff in the North East and small offices in London and Leeds, had planned to axe 75 jobs in March, but was able to reduce this to 55.

It now believes it has made sufficient cuts to see it through the recession and said it was closing in on a series of overseas contracts.

Watson Burton senior partner Rob Langley, who recently stood down from the management team, said: “We are now determined to look forward and take heart from the fact that many of our core activities, including property, are holding up better than some of our competitors’.”

Ward Hadaway hopes it can improve on its performance by next year after seeing revenues fall to £26.6m for the year to March 2009 from £28.4m a year earlier and profit per equity partner fall 53% to £190,000.

The firm, which has nearly 400 staff, plans to invest in its Leeds office, which it opened last July, and said it had won new business and hoped not to cut more jobs.

A spokesman for the firm said: “Whilst the firm’s property and corporate finance transactions have naturally been affected by one of the most severe downturns of the last 30 years – as have those in all our main competitors in the region’s legal sector – the broad spread of our practice means that several other parts of the firm are performing extremely strongly. This has helped us to record only a relatively small fall in turnover during what has been an extremely testing time for all professional services firms.”

Newcastle firm Sintons said it had been able to maintain its 160 staff, which includes 85 lawyers, of whom 22 are partners. It increased its turnover by 10% in the year to January to £9m, which is its eighth consecutive year of double-digit growth, helped by a growing portfolio of high-profile clients.

It has added 10 staff in the past 12 months. A spokesman said: “I would be extremely cautious about making any statements as to how the next few months will pan out as the sector still remains challenging.”