Law firm's profits rise 14 pc despite tough year with stuttering economy

Cobbetts, which employs 191 people at its Leeds office, said annual net profits rose by 14 per cent to 10.4m.

The group reduced its bank borrowings by 24 per cent to 8.8m, despite turnover falling seven per cent to 43.8m.

Cobbetts' managing partner Michael Shaw said: "The last financial year required focus and tenacity, a challenge that our people rose to across the board. While certain transactional areas continued to experience sluggish deal flow during the year, in others we achieved substantial growth."

Growth areas included banking and finance litigation, where it generated a record fee income by acting for mortgage providers, clearing banks and other lenders.

Highlights for the Leeds office during the 09/10 financial year included advising Wetherby-based Esteem Systems on its acquisition of Midas IT Solutions in May and advising Barclays Corporate on the employee buy-out of children's play equipment manufacturer Sutcliffe Play in April.

Guy Jackson, head of the Leeds office of Cobbetts, said: "The team in Leeds has performed exceptionally well in spite of the difficult market conditions."

Over the past year Cobbetts has expanded overseas to Russia and the Middle East.

Mr Shaw said the past two years had been challenging for the entire legal community.

"We are by no means back to the level we wish to be, but by concentrating effort and resources in areas of market differentiation and potential growth, we have weathered the storm and are now emerging stronger and hungrier than before," he said. He said the group was looking forward to a year of controlled growth.

During the year the Leeds office strengthened its corporate team with the appointment of David Armitage as a partner.

Mr Armitage, who joined the firm in January, spent 23 years at Hammonds in Leeds and London. He is responsible for advising corporate clients in Europe and North America on cross-border mergers and acquisitions, IPOs and commercial ventures.

In June the Leeds office made nine promotions across a number of its key service lines.

Emma Roe, an associate within Cobbetts' Technology, Media, Trade and Infrastructure team, was promoted to director. Promoted to associate were Nia Bryan, James Davidson, Ian Drew, Catherine Lonergan, Sara Morgan, Chris King, Phil Garvey and Michelle Smith.