Dundee-based law firm Thorntons has credited a number of factors as it records its strongest-ever financial performance.
The firm has benefited from demand in the property market and an increase in Scottish tech deals.
A backlog of court work caused by Covid restrictions was also attributed as a factor for strong performance.
The firm’s annual results for the year to May 31 2021, show turnover increasing to a record £31.2 million, up 1.9% on the previous year.
Thorntons ‘resilience and ambition’ shown
Managing partner Lesley Larg described the figures as “tangible proof of the firm’s resilience and ambition, despite the significant challenges of the pandemic.”
She said: “Right across the board, from family and private client work to corporate deal flow – which totalled more than £250m in the last financial year – our increasing performance underlines the confidence clients have in our teams.”
Following a series of acquisitions and significant hires, Thorntons is now the fourth-largest independent legal firm in Scotland.
Thorntons headcount now exceeds 550 staff.
Ms Larg points to a pivotal strategic decision made several years ago for much of this growth.
She said: “Many law firms decided after the banking crisis of 2008 to withdraw from family law work and conveyancing to concentrate instead on corporate activity.
“In contrast, we were determined that our future lay as a truly full-service legal firm.
“As well as making commercial sense, it ensured that we remained firmly embedded in the communities we serve.”
Thorntons property sales above £300m
Headquartered in Dundee, the firm now has 13 offices ranging from Glasgow, Edinburgh and Montrose to St Andrews, Arbroath and Perth.
This network helped to increase its share of the residential estate agency market last year to over 20% in Dundee, Angus and North East Fife.
Total properties sold exceeded 1,500, with combined sales value of £333 million.
The managing partner added: “We certainly experienced a spring bounce from the residential property market last year, which continued through the summer and into the autumn.
“That, combined with a backlog of court work, including family law and litigation, made a major contribution to how we performed in the last financial year.”
Thorntons’ major upturn in funding deals
The firm’s private client work has been complemented by a major upturn in funding deals for Scottish-based technology firms.
Thorntons advised on a string of key transactions, including the £42 million fundraising round for agri-tech business IGS.
In total, the firm advised on £105 million worth of tech deals in the 12 months to May 31st 2021.
Ms Larg is confident the trend is set to continue.
“Currently, opportunities within the tech sector in Scotland are absolutely burgeoning,” she said.
“There is real resilience, with major investor appetite for the right businesses.
“We are excited about the significant growth prospects in the years ahead.”
Thorntons chair Colin Graham also cited the “increasing breadth” of the 160-year-old firm’s capabilities as a major factor.
The business has enjoyed 91% growth since 2014.
He said: “In the areas we are specifically focused upon, we are performing at an increasingly impressive level.
“Our work in the healthcare sector involved acquisitions and expansion funding worth over £35 million in the last financial year.
“That’s largely as a result of building long-term, positive relationships with our clients and a very strong degree of word-of-mouth recommendation.”
Law firm boss ‘proud’ of no redundancies
Mr Graham said he was proud the firm had made no redundancies during the Covid-19 pandemic.
He said the firm emerged with every job intact “thanks in no small part” to the government’s furlough scheme.
“The fact we were able to bring people back so quickly after furlough has been hugely beneficial.
“It has enabled us to create a further 75 new jobs in the past eight months.”
