Denton Wilde Sapte saw its profits jump by more than £6m last year after signing its old Five Chancery Lane offices over to new tenants. However, the windfall did not help the firm avoid a significant fall in cash flow.
The City firm saved £6m worth of costs in the 2006-07 tax year when it signed the offices over to Lewis Silkin, according to limited liability partnership (LLP) accounts recently filed with Companies House.
The office disposal helped Dentons slash its operating charges by £12m to £24.1m, with the firm also cutting establishment costs by £4.6m. The improvements meant profits increased by 50% to £50.6m, with the LLP making £45.8m in profits.
Significantly though, cash flow at the firm fell by £11m to £39.3m, with the firm owed £3.4m more by debtors at the end of the last financial year than in 2005-06. At the same time, it ended the year owing creditors £9.5m, with total debt standing at £11.4m Ñ up from £8.5m the previous year.
Dentons gained 20 fee earners and six partners over the period and, with support staff numbers dropping by only eight to 643, it saw its staff costs rise by £3m to £74.5m.
The highest-paid partner at the firm received £609,000 in 2006-07, 11% up on the figure of £546,000 the year before. Average profits per partner, rose 42% to £390,000. Over the year the firm made £4.8m worth of improvements and additions to its property but made £5.3m back on sales of equipment of furnishings.