Figures up at Anderson Strathern as further merger announced

Legal firm Anderson Strathern is targeting a place in the Scottish top three as it reported profit growth on slightly increased turnover in its 2014-15 financial year, and announced its second merger in as many months.

Glasgow practice Jeffrey Aitken will join the Edinburgh headquartered firm as from 11 April, following the acquisition this month of Edinburgh construction practice ADLP Solicitors.

Anderson Strathern's revenue for the year to 31 August 2015 rose from £21.5m to £21.7m. Net profit was up from £7m to £7.2m, equating to a rise per full equity partner from £161,000 to £174,000. Operating cash flow increased by 9% (£1m) in the year, with cash held at 31 August 2015 rising to £3.8 million. The firm said it had set aside a significant proportion of this for future investment in people, IT and infrastructure.

The merger with Jeffrey Aitken, which specialises in private client work, specialist road transport law and general litigation, will add two partners and 10 staff to Anderson Strathern's 53 partners and around 220 other staff.

Managing partner Murray McCall commented: “2015 has been a great year for the firm, marked by steady organic growth, a series of lateral hires, substantial growth in the Glasgow office and some great client wins across the commercial, public and private client sectors. When you look at our trajectory as a Scottish law firm, we’re on course to break into the top three over the next few years. We have strengthened our balance sheet during the period and increased overall profitability in line with the firm’s three year strategic plan, giving us the ability to recruit and retain the best people to meet the challenges of the legal market.”

He added: “While we would never want to rule out a substantial merger altogether – Anderson Strathern itself was founded by the merger of two established Edinburgh firms in 1992 – our partners are collectively of the view that our medium-term future is best served by a standalone strategy of organic growth, lateral hires and, where they present themselves, occasional opportunities to bring smaller scale, high quality practices like Jeffrey Aitken and ADLP into the business.”

Gordon Frew, Jeffrey Aitken's senior partner, said: "We are excited about the forthcoming merger of our business, which dates back more than a century, with Anderson Strathern and are confident our clients will benefit greatly from the additional and enhanced legal services the merger will bring about."

Last year Anderson Strathern moved to flexible, high-tech office space in George Square, Glasgow. In addition to its Edinburgh base it also has an office in Haddington.