ANDERSON Strathern said it was on course to becoming one of Scotland’s top three law firms as it announced two acquisitions and an 8.2 per cent increase in profit per partner to £174,000 for each of its 53 equity owners.
“When you look at our trajectory as a Scottish law firm, we’re on course to break into the top three over the next few years,” said managing partner Murray McCall of the Scottish legal market, which is currently headed by fellow Edinburgh-based independents Brodies and Burness & Paull.
“We have strengthened our balance sheet during the period and increased overall profitability in line with the firm’s three year strategic plan, giving us the ability to recruit and retain the best people to meet the challenges of the legal market.”
Anderson Strathern, which has clients including chemicals group Ineos, the Scottish Government and supermarket chain Scotmid, said it had agreed a merger with Glasgow-based solicitors Jeffrey Aitken that would complete on 11 April. Founded more than 100 years ago, Jeffrey Aitken specialises in private client work and litigation, including a specialist practice in road transport law that acts for clients including road haulage, freight and bus firms.
“When I was a trainee back in 1994, Jeffrey Aitken was one of the very big Glasgow firms that people would aspire to work for,” Mr McCall said. “So it’s quite interesting that I’m now responsible for a merger that will bring them into Anderson Strathern and enhance our Glasgow offering.”
Anderson Strathern also announced the acquisition of ADLP Solicitors, an Edinburgh-based firm specialising in dispute resolution in the construction sector. Alistair Dean, co-founding partner, was a trainee during the early 1990s at Anderson Strathern, where he now becomes partner.
“We started talking to Alistair about a year ago because that sector was picking up and it looked like a nice bolt-on that we could do,” Mr McCall said. “Our strategy is to look for small firms and see what we can do there, rather than looking at mega mergers.”
The combined business will now have over 270 staff, including 55 partners.
Turnover in the year to the end of August 2015 edged ahead 1 per cent to £21.7 million, Anderson Strathern reported, while an additional £1m – 9 per cent – was generated in operating cashflow during the year. Of the £3.8m in cash held at the year end, a significant proportion has been set aside for future investment in people, IT and infrastructure, the firm said.
Mr McCall said the increase in profit per equity partner was partly due to efficiencies, with fewer partners managing more clients.
“We still have a high number of partners, but some people have retired and some people have gone off to be sheriffs and interesting things like that. But we’ve managed to maintain profitability,” Mr McCall said.
Anderson Strathern was formed in 1992 by the merger of two Edinburgh firms that traced their roots back to the 18th century. The Duke of Buccleuch, the UK’s largest private landowner, has remained a client since the 1750s.
New client wins in 2015 included Scottish Water, Transport Scotland, Midlothian Council, Apex Hotels and the Scottish Prison Service.
Gordon Frew, senior partner at Jeffrey Aitken, said: "We are excited about the forthcoming merger of our business, which dates back more than a century, with Anderson Strathern and are confident our clients will benefit greatly from the additional and enhanced legal services the merger will bring about."
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