Olswang has paid out millions of pounds in loan facilities to its European offices, and expects to recoup some of its loans which almost £23m by 2020, the firm’s LLP accounts have revealed.
It is not yet clear whether the terms for the repayment of the loans will have to be renegotiated following Olswang’s merger with CMS Cameron McKenna and Nabarro, or whether CMS will takeover the loan.
The UK LLP provided a £4.1m loan facility to Olswang France LLP, which is due to be repaid by 31 December 2020.
As at 30 April 2016, the firm’s subsidiaries in Singapore, France, Germany, Belgium and Spain owed the UK LLP a total of £22.9m. The firm also revealed in the document that the disposal of its Berlin office in September 2015 resulted in a profit of £300,000.
The accounts filed at Companies House also showed Olswang management saw their profit share drop more than a third in the last financial year.
The firm is currently preparing for its upcoming merger with CMS Cameron McKenna and Nabarro, which will go live on 1 May.
Total management-level remuneration was £5.4m in 2015/16 – a 36.4 per cent drop from the previous year’s £8.5m.
However, the highest paid partner took home £759,000, up 31.8 per cent from £576,000 in 2014/15.
Olswang’s turnover dropped by 11 per cent from £125.9m to £112.1m last year, while net profit declined by 8 per cent from £24.5m to £22.5m.
Olswang’s merger with CMS and Nabarro goes live in May. CMS and Nabarro have both released their 2015/16 LLP accounts. CMS said its revenue increase slightly among the LLP offices from £259.2m to £263.3m – a 2 per cent increase. However net profit decreased by 4 per cent from £77.8m to £75m.
Nabarro’s fillings revealed its pension deficit had reduced by more than a half from £31.9m to £12.2m.
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