SCOTTISH law firm Blackadders has reported a rise in profits and turnover amid “challenging” trading conditions, driven by a strong performance in the second half of its financial year.
New results, which combine the accounts of full-service law firm Blackadders LLP and the Blackadders wealth management operation, show that the business made a profit of £4.23 million in the year ended March 31, 2023, up from £3.93m the year before. Turnover across the group increased to £16.7m from around £15.4m.
The results are the first to be reported under the leadership of joint managing partners Emma Gray and Ryan McKay, who were appointed in August 2022. The duo recently oversaw the launch of a new corporate brand for the firm, designed to attract the next generation of lawyers and demonstrate it is a place where long-term careers can be built.
Mr McKay said: “We are very pleased with the performance. It was a challenging year, but we managed to make early progress on a number of reorganisation initiatives in the firm and this has shown through to the bottom line.
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“Trading conditions continued to be challenged by the fallout from Covid, the cost of living crisis and global conflicts but we have been very clear in concentrating on delivering for our clients. By sticking to our values of service excellence, continuous improvement, and our people, we have kept the focus of the firm on core activity.
“The understanding from our teams of the need to meet every challenge given to us by our clients has never been greater and this has been reflected positively in the financial performance.”
Blackadders, which can trace its roots back around 250 years, employs around 220 people across offices in Glasgow, Edinburgh, Aberdeen, and its home town of Dundee.
Accounts for Blackadders LLP state that the firm’s performance had been “extremely positive, especially considering the continuing cost of living and inflationary pressures on the wider economy”, though highlighted that the economic outlook remains uncertain, citing geopolitical tensions and forthcoming domestic elections. It reported that profit before members’ remuneration and profit shares increased to £3.66m from £3.27m, as turnover increased by 9% to £14.4m.
Meanwhile, Blackadders Wealth Management saw profit before members’ remuneration and profit shares edge up to £691,770 from £659,249, as turnover increased to £2.25m from £2.17m.
The firm said performance in the current financial year has been strong to date, amid expectations that income across the business will rise by £1m and profits will further increase.
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Longer term, Blackadders is aiming to lift turnover to £25m and secure its position as a top five Scottish law firm by its 2025/26 financial year.
It noted that there had been a good response to the corporate rebrand, which was unveiled in October alongside a new website aimed at improving internal communications and collaborative working between offices.
Mr McKay added: “Our new brand better reflects our core values and the prominence of people on the new website reflects the trust we have in the quality and consistency of service being delivered across sectors by our teams.
“Given the impact of improved digital technology and the growth that artificial intelligence is already having on our sector, the board is constantly challenging the way the firm works and delivers its services.
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"While there are clearly challenges with AI, it also presents us with opportunities to change the way we work and interact with clients to their benefit. It would be remiss of law firms to not rise to the challenges and opportunities ahead, and, as long as the welfare of clients remains at the core of our beliefs, we believe there are exciting times ahead.”
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