LAW firm Harper Macleod has posted record results and said demand for commercial legal services is holding up amid uncertainty about Brexit.
Glasgow-based Harper Macleod grew profits by eight per cent to £11 million before partner distributions in the year to March 31, from £10.2m in the preceding year.
Turnover increased by 9.5% to £29m in a year that chairman Lorne Crerar said was one the busiest and most successful in the firm’s history.
The accounts cover a period during which mergers and acquisitions and commercial property activity in Scotland was impacted by the lack of clarity about what Brexit will mean.
Read more: Law firm highlights impact of Brexit as profits fall
This reduced the amount of transaction-related work available for lawyers.
However, Harper Macleod chief executive Martin Darroch said: “Uncertainty is nothing new, whether it is caused by Brexit or other factors outwith our control …. we’ve always taken advantage of the opportunities that this uncertainty can create for a business such as ours.”
He said Harper Macleod had grown its market share in key areas of business, including public sector work, energy, real estate and construction and banking and finance.
Dispute resolution specialists worked on high profile cases including the action by MPs which culminated in the Court of Justice of the European Union ruling the UK could unilaterally revoke its Article 50 notice to leave the EU.
Read more: Harper Macleod takes forward $120m share fight for Fanduel founders
The firm has also felt the benefit of moves made to strengthen its presence in areas such as the Highland and Islands.
Harper Macleod has acquired firms in Inverness and Shetland in recent years.
In June the company moved into Moray through the acquisition of Elgin-based Wink & Mackenzie. It said the move was expected to add a seven-figure sum to overall turnover.
Increased scale has helped Harper Macleod compete as companies that want commercial law advice look to reduce the number of law firms they work with.
Mr Darroch said the combination of value and quality Harper Macleod can offer sets it apart from competitors who “on one hand look to charge fees not reflective of the Scottish market, or on the other do not have the scale to meet all of a client’s requirements”.
The remuneration of the average member of the Harper Macleod limited liability partnership was £164,180 in the latest year, against £155,488 in the preceding year.
The profit attributable to the member with the largest entitlement in the latest year was £694,000 up from £590,000.
Mr Crerar said as an independent firm based in Scotland Harper Macleod played an important part in a legal profession that was in danger of losing its identity.
Read more: Glasgow law firm acquired by big player based in England amid upheaval in sector
“Our industry relies on having thriving, Scottish headquartered firms leading the way to ensure that the future of Scots law and the profession here is secure,” he said.
A range of Scottish players have been acquired by rivals based outside the country in recent years.
TLT, which has headquarters in Bristol, acquired Glasgow-based commercial property specialist Leslie Wolfson & Co in October.
Two other prominent law firms based in Scotland reported growth in profits In July.
Brodies said it grew profits before partner distributions by 14% in the year to April 30, to £37.4m from £32.9m. It grew turnover by 12%, to £76.9m from £68.6m.
Shepherd and Wedderburn grew profits before partner distributions 3.6% in the year to April 30 to £22.8m, from £22m. Revenues increased by 4% to £55.7m, from £53.5m.
Earlier this month Burness Paull, which has headquarters in Edinburgh, highlighted the impact of political and economic uncertainty on the key oil and gas and commercial property markets after recording a fall in profits in the latest financial year.
It made £22m before partner distributions in the year to July 31, down 8% from £23.8m in the preceding period. Revenues increased by 2% annually to £58.5m from £57.6m.
The Harper Macleod LLP has 66 members, up from 65 at the start of the 2019/19 financial year.
Employee numbers have increased to 320, excluding LLP members, from 284.
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