DAC Beachcroft announces financial results for 2019/20, showing a sixth successive year of growth, increased profitability and improved liquidity, ahead of the impacts of COVID-19

DAC Beachcroft announces financial results for 2019/20, showing a sixth successive year of growth, increased profitability and improved liquidity, ahead of the impacts of COVID-19's Tags

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DAC Beachcroft announces financial results for 2019/20, showing a sixth successive year of growth, increased profitability and improved liquidity, ahead of the impacts of COVID-19

Published 5 August 2020

International law firm DAC Beachcroft is pleased to announce its provisional, unaudited results for the year ended 30 April 2020.

In headline terms:

  • Total turnover was £258 million, an increase of £15 million (6%) on the previous year.
  • Profit before tax grew to £56 million, an increase of £4 million (7%) on the firm's 2018/2019 results. 
  • Profit per member grew 3% to circa £590k, maintaining the ‘above £500k’ benchmark for the third consecutive year.
  • The firm again improved its net cash position, having £8 million net cash by year end, having put in place significant liquidity retention measures in response to the COVID-19 crisis and its anticipated effects.
  • Lock-up days were maintained in the face of the unusual circumstances.
  • These provisional, unaudited results may, in view of events after the balance sheet date, be more than usually subject to change.  

This is the firm’s sixth successive year of combined turnover growth, profit before tax growth, profit before tax margin growth, profit per member growth, and net debt reduction/net cash enhancement.

DAC Beachcroft’s Managing Partner, David Pollitt, said, “Our results reflect, at the Group level, yet another year of consistent improvement. I am very pleased we were able to end the year strongly, particularly given the impacts of COVID-19 which started to take hold in the final quarter.

“Throughout the year we continued our steady expansion – launching in Belfast, joining forces with a market-leading healthcare law firm in Madrid, adding corporate/commercial and competition capabilities in Dublin, taking on a number of new hires in Glasgow – and we have benefitted from our first full year in France. We are also delighted that DAC Beachcroft is increasingly becoming the firm where talented people want to work, both in the UK and internationally. The strategic growth we are pursuing is driven by client demand and our desire to serve them more fully as a truly international firm.

“The ongoing underlying financial improvement we have seen this year is down to our continued adherence to a clear and consistent purpose, strategy and cultural principles. We have invested in our colleagues, further strengthened our commitment to outstanding client service, and continued with a disciplined focus on financial management. The diversity of our business is also a source of robustness. We act for all of the UK’s top-ten insurers, we are market leaders in the provision of strategic, corporate, commercial and regulatory legal advice to providers and commissioners in the health sector, and we advise all of the UK’s top-11 housebuilders. Our Business Advisory teams continue to excel in providing corporate transactional advice to blue-chip clients. Finally, our focus on being an inclusive and innovative firm remains a priority, as we develop and invest in stronger processes and systems.

“As a result, our business is as strategically, financially and operationally resilient as possible, and we anticipate that these efforts will hold us in good stead in the current, straitened times. We remain in good shape and are well placed to address any challenges an increasingly uncertain future may bring, with resilience and adaptability. Moreover, this is a time when clients need resilient law firms, able to support them, and we are one such firm.”

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