Law firm Thorntons managed to grow its sales last year despite Covid-19 disruption.
Hundreds of workers went on furlough as courts closed and the property market was shut down during the first lockdown.
Despite this, the firm still managed to increase its sales by 2.6% for the year ending May 31.
Newly filed accounts show that Dundee-headquartered Thorntons’ turnover increased to £30.5 million from £29.8m in 2019.
Profit before members’ remuneration and profit shares rose to £8m against £7.1m the previous year.
Business arms hit by Covid-19
Managing partner Craig Nicol said the results represent the first full year since it acquired the Edinburgh operation of Morisons LLP.
He said: “The business continued to grow and turnover and profitability increased.
“Our increased commercial offering in Edinburgh and in Glasgow played a significant role and our new colleagues who arrived following the Morisons acquisition settled in well.
“Like many businesses, our trading for the last months of the financial year were hit by the onset of Covid-19.
“Many of our markets were significantly impaired and, in the case of the residential property market, closed completely. Court closures meant significant challenges in our dispute resolution teams.
“These financial results represent our continued commitment to invest for the long term and our clear strategy for growth across our business.”
Acquisition through growth
Thorntons is now one of the largest full service firms in Scotland, employing more than 500 people in 11 locations across the country. It has 58 partners.
It has legal offices and estate agents across Fife, Angus and Perth.
As well as the Morisons acquisition, it acquired Fife firm Pagan Osborne in 2017.
Mr Nicol said at its peak, the company had around 250 members of staff on furlough. This figure is now 17 on full furlough and 25 on flexi-furlough.
Hopes for 2021
While the company is lagging behind last year’s performance, it is optimistic about 2021.
“Our investment in technology over the years meant that we were able to implement a rapid transition to home and agile working,” Mr Nicol added.
“Our people showed remarkable resilience, ensuring that our clients continue to be served well.
“Whilst currently we are still lagging behind last year’s performance, we have recovered well and we are now looking forward to planning for our next five year strategic period.
“We remain committed to providing our clients with a full service offering and our business levels remain strong amid continued uncertainty in the economy as we look towards 2021 and beyond.”
Change in managing partner
Mr Nicol will stand down on May 31 after 10 years as managing partner. Seven of those were as joint managing partner with Scott Milne.
He will be succeeded by Lesley Larg, who has sat on the firm’s board for several years. Mr Nicol will remain as one of the firm’s partners.
“It was always my intention to step aside as managing partner in the next couple of years and there is no doubt the time is right,” he added.
“We are now considering our next five-year strategic plan and how best to deliver for the changing requirements of our clients and colleagues in the post-Covid environment.
“I am delighted to be handing over the reins to Lesley who has the skill, drive and expertise to lead the firm through this next period.”
