Herbert Smith's bank borrowings reach £70.9m
Herbert Smith grew from £59.5m to £70.9m in 2010-11, bringing total debt back up to near 2008-09 levels, the firm’s LLP accounts have revealed.
Finance director Robert Boardman said the increase in debt was due to movements in the firm’s lockup. “It depends where you are in the cycle of collecting debt and WIP and we were in a better position the year before,” Boardman said, “but there is no real material increase in debt or our facilities.”
Herbert Smith notes: “In common with other businesses, the current economic conditions mean that demand for services could be impacted in the short term.
“In addition, liquidity pressure on both the group’s clients and suppliers could also have an adverse impact on the business.”
However, the firm adds that it has “considerable financial resources together with a diverse range of clients and suppliers across different geographic locations and sectors”. As of 30 April 2011 Herbert Smith had £29.6m of cash, according to its LLP accounts.