SJ Berwin’s 2005-06 accounts, the firm’s first as a limited liability partnership, show the City firm agreed a rent-free period worth £2.03m when it moved offices in 2006. The firm also received a £1m boost as it was able to exit the lease on its old property earlier than anticipated. The changes helped the firm break the £700,000 average equity partner profits barrier for the first time last year.
The accounts also illustrate the cost of the office move, with the firm spending £20.6m in improvements and £7.7m in fixtures, fittings and equipment. Of this £28.3m, the majority was covered by partner funds, with the firm closing the financial year owing just £3m in loans.
SJ Berwin finance director Mike Giles commented: “We secured the new place in a relatively quiet market, and were able to negotiate a good contract. I anticipate we will repay our borrowings while we are still rent-free.”
According to the accounts, the firm also has a lock-up period of 132 days and work-in-progress of 28 days.
Colin Ives, head of professional practice tax at Smith & Williamson, commented: “A value of around 100 is normal for lock-up — the work-in-progress days are very low, and you would expect a more even balance between work-in-progress and debtor days. This shows that the firm does most of its billing in its final accounting months.”
The number of fee earners at the firm increased by 19% from the previous year. It paid out a total of £42.7m in wages, and £919,000 to its pension fund.
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