Clyde & Co has posted a double-digit increase in profitability against an 8.5 percent rise in revenue for 2017-18—results that represent the insurance firm’s 20th successive year of revenue growth.
Net profit rose by 10 percent, up from £127.6 million ($168.58 million) to £140.5 million ($185.62 million) during the year, while firmwide revenue reached £551.3 million ($728.34 million), up from £508.1 million ($671.26 million) in 2016-17. Last year marked the first time that the multinational firm posted revenues of more than £500 million.
Profit per equity partner (PEP) climbed by 1.5 percent to £660,000 ($871,943), with the firm explaining the difference between the increase in PEP and net profit through the addition of 63 new partners over the course of the last financial year—a mix of lateral hires and promotions.
Commenting on the results, Clyde & Co chief financial officer Duncan Crowdy highlighted the firm’s performance and expansion in the United States as a driver of growth.
“Most of our growth comes through the addition of head count and throughout this year we have achieved growth in all regions, with our standout growth in North America, he told The American Lawyer’s London-based affiliate Legal Week. “We are moving closer to North America becoming our second-largest region and we are expecting to be trading significantly north of £100 million in the region next year.”
Clyde & Co’s most prominent U.S. hires came when the firm acquired a team of 15 insurance and litigation partners across the West Coast following the collapse of U.S. firm Sedgwick late last year. The firm also bolstered its Miami office with the hire of a 10-lawyer insurance team, and its Washington office with a nine-strong team—both in January.
Crowdy said that it is “financially early days” for the Sedgwick team, with the acquisition only having a relatively small impact on the most recent financial results. However, he added that the firm is “pleased with the progress so far.”
“We see this as another set of solid results in an environment that remains a challenging one,” said CEO Peter Hasson. “Clients don’t want to see prices going up and we are seeing cost pressures growing through the salary wars that started in the U.S. and increased property costs. The two key themes for next year are integration of the new teams and investing in our operational efficiencies.”
In addition to its growth in the Americas, Clyde & Co has also opened new offices across the Middle East, the Asia Pacific and the U.K.