RPC has seen its profits slump by 8 per cent in the 2016/17 financial year and turnover grow by 2 per cent, reaching a record-high of £103m.
In the previous financial year, RPC chose not to publish net profit and The Lawyer estimated the figure at £31.3m. According to the firm’s latest figures, this has now dropped to £26.4m.
The firm did not publish PEP but, as an all-equity partnership model with 79 partners, The Lawyer estimates it to be around £334,177. This is a reduction of £70,523, or 17.4 per cent, from £404,700 in 2015/16.
Turnover has slowed by two-thirds but this is still a sixth consecutive year of growth for RPC, with a 2 per cent rise from £100.5m.
This figure is just one-sixth of the turnover growth RPC posted in a stellar set of 2014/15 results which saw turnover rise 12 per cent, profits growing by 19 per cent and PEP soaring to 22.6 per cent.
The results are James Miller’s first as managing partner after his election to the post in January 2017.
At the time, Miller said that RPC’s net 11.5 per cent growth over the previous five years owed to “long-term investment as opposed to chasing short-term gains”.
Shortly after his appointment, he spoke of his desire to broaden the firm’s portfolio outside of its traditional insurance-focused approach.
He echoed this sentiment while reflecting the views of several other managing partners that the last year’s political instability has contributed to stunted financial growth.
Miller said: “As always, we take a long-term view. Our continued investment in new business lines such as RPC Consulting and the Centre for Legal Leadership naturally had some impact on profitability, which was expected.”
“But, as for other firms, the Referendum and its surprising outcome affected the volume of work coming through the pipeline so revenue was lower than we hoped.”
The firm has had several highlights in its year including formalising its alliance with Smyth & Co after four years of association, advising Four Market on its purchase on Agent Provocateur and the introduction of a ‘mini year-end’ which reduced the firm’s lock-up by 20 days.
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