DAC Beachcroft pushes PEP above £400,000 for first time with 20% hike

DAC Beachcroft has posted rising turnover and profitability for the 2016-17 financial year, with profit per equity partner (PEP) rising to a new record high.

The insurance-focused firm saw turnover rise to £207m during the year – a 2.7% increase on the 2015-16 figure of £201.6m.

Profit before tax grew 10% from £35m to £39m, while PEP rose 20% to £432,000, up from £358,000 last year.

In addition, for the fourth consecutive year the firm reduced its net debt, bringing it down by £1m to £19m.

In 2016-17, the firm had an average of 242 partners including 90 equity partners, compared to 2015-16’s average of 232 partners, which included 98 equity partners.

Managing partner David Pollitt said: “I’m really chuffed, we did this last year as well. A 10% rise in profit and 20% rise in PEP means we have broken the £400,000 barrier for the first time. We are pumping it again. There aren’t many firms that will have gone up 20% two years in a row. I’m not saying we will do it for a third year – but we will give a damm good shot.

“It is a combination of a number of things. It is about being focused on what we do. We are not trying to be everything to everybody. We are very good in insurance, healthcare and real estate, and we have a cracking corporate and commercial unit that punches above its weight.

“It is also about being very much disciplined in the work we will do – being disciplined in charging for our work appropriately and getting paid. It is all coming together to drive an underlying change in the business, and confidence is high.”

The positive set of results come as the firm moves towards the conclusion of a wide-ranging governance and strategy review, which will include an overhaul of its members’ agreement. The firm has been consulting with partners ahead of a vote on the proposed reforms this summer.

During 2016-17, the firm expanded into new markets via a four-way alliance with insurance-focused law firms in Germany, Australia and the US, as well as association deals with Central American firm BLP and Peru firm Torres Carpio Portocarrero & Richter.