Policy of mergers helps DWF to double turnover

It reported revenues of £188m, up 84 per cent on the previous year. Profit per equity partner rose 3.3 per cent to £429,000.

DWF described the year ending April 30, 2013 as a period of “remarkable growth through strategic mergers and acquisitions”.

It completed a number of significant deals, including mergers with Scottish practice Biggart Baillie, Birmingham firm Buller Jeffries and professional indemnity outfit Fishburns.

DWF acquired struggling Cobbetts in a pre-pack deal on January 31, a day after the firm went into administration.

The group now employs more than 2,500 people at 14 offices across the UK, including Leeds and Teesside.

It had 369 partners at the year end, up from 187 a year earlier.

DWF, which grew out of practices in Liverpool and Manchester, is now aiming to become a member of the club of top 20 law firms.

Andrew Leaitherland, managing partner and CEO, said: “We have been very clear about our ambition to expand our national presence and that we see strategic mergers with like-minded firms as a key part of this.

“The decisions we have taken in the past year have all been led by market demand and have served to reinforce the expertise we have as a team.”

The legal sector is undergoing change driven by both structural and cyclical dynamics.

The Legal Services Act has ushered in alternative business structures, allowing non-lawyers to own law firms for the first time. Technology and globalisation meanwhile are fuelling increased commoditisation of legal services.

Meanwhile the economic downturn is putting sustained pressure on revenues and profits.

Combined, these factors are powering a wave of consolidation throughout the fragmented sector with stronger firms leading the way.

DWF’s expansion has been supported by some prominent hires to strengthen its sector teams.

These include commercial litigation expert Andrew Harris, a partner from big six rival DLA Piper, John Perez and his national asset finance team from Chafes Solicitors, and Alison Wilds and her team from Harbottle & Lewis, who specialise in aviation and asset finance.

DWF recently announced the appointment of four new partners and eight lawyers from Eversheds to its real estate team.

The firm has beefed up its management team with the hire of David Gray, the big-hitting former chairman of Eversheds International, joining as non-executive board director last month.

Paul Rimmer was appointed to run the firm’s Liverpool office.

Mr Leaitherland said: “We have achieved a lot this year and made significant headway towards our goal of becoming a top 20 law firm and this is down to the fantastic effort of all of our people and tremendous support from our clients.

“We have more exciting plans on the horizon for the coming year which will lead to further growth in net profit and turnover.

“The appointment of David demonstrates our ambition for not only national but international growth as we continue to build our business while keeping our values and culture intact.”

DWF was founded in 1977 in Liverpool. It opened in Leeds 30 years later.

Last month, the firm said it is looking to increase the scale of its work in the healthcare and social housing sectors following the acquisition of its rival Cobbetts earlier this year.

James Haddleton, the executive partner at the Leeds office, said DWF would consider other “client-led and sector-led” opportunities in the legal market.

In Leeds, Cobbetts had around 112 staff based in No 1 Whitehall Riverside. These staff joined the 130-strong team at DWF in Bridgewater Place.

Mr Haddleton has said: “The merger has gone very well. Cobbetts have good, energetic people. They have clients which sit nicely with what we’re trying to achieve in our sector focus.

“In healthcare, the Cobbetts team have brought across with them Emis, which provides a lot of the software for the NHS, and that sits very nicely within our healthcare focus.”

When asked if he saw any more significant deals on the horizon, Mr Haddleton said: “We never say never.”

However, he stressed that it was important to ensure that the newly expanded client portfolio received a good quality service.