Leading Scottish law firm Blackadders LLP has reported further growth in turnover and profit in its latest accounts as the firm positions itself to make the most of AI integration and to hit ambitious growth targets.
After a period of significant investment and consolidation, the figures for the 2023/24 financial year show profit increased by 6% on turnover growth of 1.4% for the combined income of the Blackadders law firm and Blackadders Wealth Management LLP.
The year saw investment in improving staff benefits, new premises and upgrades to core IT infrastructure including a new case management system. All staff now have access to private health insurance and a medical cash back scheme.
Blackadders LLP also deployed significant resources to consolidate services in Scotland’s four main cities, Glasgow, Edinburgh, Aberdeen and Dundee. The board also undertook a review of services and decided to withdraw its estate agency offering and partner with third party providers for residential property sales.
As a result of this investment and consolidation, the overall headcount decreased from 220 to 180.
The combined turnover for Blackadders LLP and Blackadders Wealth Management LLP was £16.9 million, up from £16.7 million in 2022/23. Profit before members’ remuneration and profit shares was £4.61 million, up from £4.35 million.
Ryan McKay, Joint Managing Partner, said: “This has been another strong performance by the whole team. We have used resources to ensure we are an employer of choice within the profession by improving staff reward and investing in the best offices and technology.
“This is money well spent and will ensure we are better positioned for the predicted further growth the firm will enjoy over the coming years.”
Ryan McKay, joint managing partner
Among the other drivers of growth have been increased efficiency in the firm and improved client service and cross referral work boosted by wider understanding across the firm of the
specialist knowledge available to every client through training, improved internal communications and adoption of technology.
Blackadders has a strategic aim to be proactive in the adoption of new legal technology and AI developments. In 2023, the firm established an AI and Legal Tech Committee which reports to the board and has overseen the roll out of new tools including Microsoft Co-Pilot.
Mr McKay added: “We have continued to review our operations across the firm to target areas of growth and to realise efficiency savings where appropriate without compromising quality of service. This will remain our strategy and performance indications for the current financial year remain strong.
“Another key aspect of our improving performance has been better and more true billing. Understanding the real value of our work to clients as well as regular and clear billing has helped increase turnover.”
Earlier this month, the firm moved to new office space in Dundee and has taken over one floor of the DC Thomson headquarters building in Meadowside.
Mr McKay added: “There is no doubt this was an emotional but necessary move for everyone. The new office is a more flexible and comfortable place to work. It is also a more energy efficient and sustainable environment. Being in a new home with open plan working has already made it a much more vibrant office atmosphere for everyone.”
Other initiatives undertaken by the board in 2023/24 have included a full review of HR policies, the rollout of new values and further promotion of the brand through increased external communications and social media activity.
This helped Blackadders to secure a place on the shortlist for Firm of the Year at the 2024 Scottish Legal Awards as well as four nominations, including Firm of the Year, in The Herald Law Awards of Scotland. The firm was also awarded Legal and Property Firm of the Year at The Courier Business Awards 2024.
Mr McKay added: “It is important that we continue to raise our profile which has enabled us to attract fantastic new talent and retain the very best of our existing team. We have ambitions to be one of the leading law firms in Scotland and that means we cannot afford to rest on our laurels.”
The Blackadders’ board has introduced a 5 by 25 Strategy to ensure the firm is as well placed as it can be to benefit from any sustained upturn in the economy. The five initiatives the firm is aiming to achieve by the end of the 2025/26 financial year are:
- Increase turnover to £25 million
- Achieve a profit margin of 35%
- Be regarded as an employer of choice in the industry
- Act as a destination lawyer for clients
- Secure Blackadders’ position as a top five Scottish law firm.