Gordons hit after loss of income from major client

The firm, which is trying to carve a niche for itself as a leading law firm for retailers, said a number of partners leaving the business also led to the average profit-per-partner dropping by 6.7 per cent.

In a report accompanying the firm’s latest accounts filed at Companies House this week, managing partner Paul Ayre said: “Gordons has always been an incredibly strong and stable firm so this was a challenge. However, I am pleased to report that this was met head on.”

Last year The Yorkshire Post revealed that Gordons was no longer advising its long-standing supermarket client in several legal areas.

Over the years, Gordons, which has offices in Bradford and Leeds, has helped Britain’s fourth biggest supermarket buy over 300 stores and advised on hundreds of contracts.

Gordons’ latest accounts show the impact of the changes on the firm, which has offices in Bradford and Leeds.

In the year to the end of March 2016, turnover fell to £19.7m compared to £22.5m the previous year.

Pre-tax profit fell to £8.5m compared to £10.6m the year before.

Average partner pay was £283,002, down from £303,328.

Gordons had 30 partners in 2016, five less than in 2015. Yesterday, the firm said it employed 196 staff in total, down from 245 in 2015 and 225 at the end of the last financial year.

In 2015 a team of private client lawyers left Gordons to set up a new niche firm, while Simon Pilling, who acted for Morrisons on the sale of Kiddicare to Endless in 2014, also left the business.

Mr Ayre, the man reputed to be the best-paid lawyer in Yorkshire, pocketed almost nine per cent of the firm’s turnover with a £1.7m salary, down from £1.9m the previous year.

Mr Ayre said: “The year...was one of change for Gordons. Principally this was due to the sharp decline in income from the firm’s biggest client. This combined with strategic decisions taken in prior year to avoid taking on new work which did not offer sufficient profit margin, meant that turnover was down...on the prior year.”

In November 2016, Jo Williamson, former regional business development director at Lloyds Bank, joined the firm to head up its business development. Mr Ayre said her appointment was already reaping benefits for the firm in new client wins.

The law firm now has a roster of more than 20 retail clients.

“The big success stories during the year were in new clients wins,” Mr Ayre said. “These have continued at an unprecedented rate and this trend has continued into the current year.”

Under Mr Ayre, Gordons became the first law firm to set up an apprenticeship scheme to offer a way into the profession for children from less privileged backgrounds.

In the year to the end of March 2016, the scheme saw its first graduate. “We are very proud of having set a trend here that other law firms have followed,” he said.

In a statement yesterday, Mr Ayre added: “The past year has been tougher, but that’s business. We’re implementing positive change across the firm.

“Our partner group, with terrific support from a committed body of staff, know that the values of the firm based on honesty, straightforwardness and the building of strong relationships with clients, provide the platform for long term success.”