LAW firm Gillespie Macandrew has revealed it has turned its back on potential mergers and acquisitions in favour of pursuing organic growth as it revealed that profits narrowed in its latest financial year.
The Edinburgh-based firm, which also has offices in Glasgow and Perth, booked a two per cent increase in turnover to £9.8 million in the year to February 28.
Operating profits dropped by £350,000 to more than £2.4 million, but the firm signalled average profit per partner by five per cent to £156,000, excluding an exceptional item.
Chairman Murray Shaw said the firm, whose 84 fee earners include 18 partners, has elected to focus on growing its business organically after reviewing the possibility of pursuing mergers and acquisitions.
The decision was reached at a time of continuing consolidation across the Scottish legal scene, with leading firms signalling this year that further deals are likely.
Mr Shaw noted that Gillespie Macandrew's internal deliberations led it conclude that it has a "good strong business" that offers a better platform for growth than acquiring or linking up with others.
He said: "It was important that we made the right choice and, naturally, we spent a significant amount of time on this with the ultimate decision being to continue to develop our own business.
"I am pleased, therefore, to report the increase in turnover and average PEP in a period where we were not acquiring or "bolting on" other teams or firms."
Mr Shaw, who joined Gillespie Macandrew as a partner from DWF in March 2014, noted that the firm had a strong year in the renewable energy sector. He added that its rural business had also secured a number of "significant wins."
Mr Shaw said: "I am also pleased to report the significant improvement in our lock-up and strengthening of our cash position, which saw us end the year with over £1m in the bank and modest third party borrowing of under £200,000, all of which will be repaid this year.
"This will leave the firm debt free and in a strong position to progress the three-year planned programme of strategic investments which we have already started to implement."
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