Trowers & Hamlin looking to lower debt
Trowers & Hamlin saw a 32 per cent increase in borrowings during 2016/17. The firm’s year-end net debt rose from £5.9m to £7.8m, an increase of £1.89m.
Senior partner Jennie Gubbins attributes the firm’s increase in debt to a number of things: growth in UK regions, notable international practice, and a stronger focus on litigation. “The nature of the work we’re doing, particularly in our regional offices, which includes more CFA-type matters than it previously did, has a direct impact on lock-up,” commented Gubbins.
Gubbins also mentioned that the lock-up data is evidence of the conservative attitude of the legal market in collecting payment from clients.
“It’s undoubtedly true, lawyers are inherently cautious about upsetting their clients and can be reluctant to risk a client relationship by chasing down a bills,” said Gubbins. “The key is to educate lawyers to understand the business model.”