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www.dwf.law
Contents
01 02
DWF at a Glance 04
Chairman’s Statement 08
03
Strategic Progress 10
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04 05
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Our Values 14
Creating Sustainable Value 16
Corporate Social Responsibility 18
07 08
Business Overview 22
Divisional Reports 26
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Governance 30
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Financial Review 38
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Financial Reports 40
Unless otherwise stated to the contrary or unless the context so requires, all references to DWF mean DWF LLP,
a Limited Liability Partnership with registered number OC328794.
DWF at a Glance
Welcome
At DWF we are driven by our goal to change the business of
law by making legal services a more powerful enabler of client
success. Our focus is on doing things differently, to change
clients’ views of how astute legal services can benefit their
business and ultimately improve their bottom line.
Our clients range from FTSE 100
multinational household names to private
individuals, from both the public and
private sector, including clients such
as: adidas, Aviva, Babcock, Certas
Energy, Colony Capital, DHL, RSA, Serco,
Telefonica, Whitbread and Zurich.
Our values also enable us to recruit, retain
and develop the highest quality people,
who are experts in their fields. Working
across the UK & Ireland, Germany, Dubai
and Brussels, our talented people have an
ever extending reach across a wide range
of industry sectors.
We believe that by successfully engaging
with our people, we can drive our business
forward responsibly and effectively. The
values we share bring us together under
a common framework, which is helping to
build our reputation as a highly regarded
international legal business.
Recognised by the Financial Times as
one of Europe’s most innovative law
firms, we are renowned for doing things
differently. We apply commercial and
sector knowledge and make better use
of technology to add value to the legal
advice we give.
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Strands of
our Strategy
Understanding
our clients
Law firms often fail to talk in depth to clients; they
assume that they know what clients need and
offer a standard solution. As a legal business,
our flexible approach means we engage with our
clients, then develop a solution together.
Engaging our
people
Engaging and listening to our people is essential
to our success. The values we share bring us
together, and this connectivity helps us to create
and deliver outstanding experiences for our
people, our clients and our communities.
Doing things
differently
Innovative thinking is key. Whether this is
through our approach to using technology,
developing our range of services beyond legal
advice, or simply by turning an approach on its
head to increase efficiency and effectiveness.
Our Sectors and Practice Groups
We have eight core sectors which underpin our go-to-market strategy:
• Central & Local Government
• Real Estate
• Energy & Industrials
• Financial Services
• Insurance
• Retail, Food & Hospitality
• Technology
• Transport & Logistics
Our sector groups are served by six core practice groups which make up our
Insurance Services Division and Commercial Services Division. These provide a
multidisciplinary approach to supporting our client base.
Insurance Services Division:
Commercial Services Division:
• Catastrophic Personal Injury
& Occupational Health
• Corporate Services
• Motor, Fraud & Claimant
• Litigation
• Professional Indemnity & Commercial
• Real Estate
Our Locations
Office Locations:
Birmingham
Bristol
Brussels
Cologne
Dubai
Dublin
Edinburgh
Glasgow
Leeds
Liverpool
London
Manchester
Milton Keynes
Munich
Newcastle
Preston
Financial Results
Revenue
£186.9m
Profit
£20.4m
PEP
£309k
Total Number of People: 2,187
(as of 30 April 2016)
69
72
40
107
Key:
Senior Fixed Share Partner (107)
Directors - All Levels (72)
Equity Partner (69)
Fixed Share Partner (40)
Associate Partner (26)
Salaried Partner (11)
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Partner headcount
FTSE 100
18%
FTSE 250
32%
We work for 18% of the FTSE 100
We work for 32% of the FTSE 250
Business Divisions
Insurance Services Division:
Our Insurance Services Division encompasses
With over 700 people and revenues over £85m,
Professional Indemnity & Commercial, Catastrophic
this division is led by Paul Berry, and is the
Personal Injury & Occupational Health, and Motor,
preferred supplier to a number of leading UK
Fraud & Claimant practice groups.
insurance companies.
Revenue
£85,073,903
No. Partners (as of 30th April 2016)
People (inc Partners, as of 30th April 2016)
92
700+
Commercial Services Division:
Our Commercial Services Division encompasses our
£101m, this division is led by Stephen Miles, and along
Litigation, Corporate Services and Real Estate practice
with our Insurance Services Division works with over
groups. With over 600 people and revenues of over
18% of the FTSE 100 and 32% of the FTSE 250.
Revenue
£101,552,165
International Division:
No. Partners (as of 30th April 2016)
People (inc Partners, as of 30th April 2016)
150
600+
As of May 2016 we launched our International Division
in order to focus our efforts in supporting our clients
on a global scale.
Chairman’s
Statement
Alan Benzie, Chairman
A challenging year
Managing a demanding forecast
People Executive (EPE) which looks at
It has been a challenging year for our industry,
We are under continual pressure from the
but with good insight and intelligent planning
‘more for less’ economy and efficient business
we’ve managed to achieve above average
practices are essential if we are to continue
results. We are pleased with developments
to thrive whilst meeting client needs.
in our Commercial Services Division but it
As a client-centric legal business, our teams
has been a tough year for Insurers. This has
have focused on creating a full spectrum of
then impacted their advisors and resulted
products and services to support our clients in
in increasing pressure on margins. We have
meeting their own business objectives. It is the
worked hard at controlling overheads and net
development of this extended service offering
profit is up, but there is still plenty of work to
that ultimately underpins our ability to become
be done.
a sustainable business for our people, and
one that adds value for our clients.
We have secured the management of our
financial teams with the appointment of our new
Driven by people and relationships
Chief Financial Officer, Chris Stefani, who joined
us from EY. Chris is a strong cultural fit, full of
ideas to further improve our processes, and
will provide the strong financial management
essential to underpinning our success.
Whilst it has been a challenging year it has
been one of review, analysis and planning for
a strong future with our people at the heart
of it. We have formulated the Engaging
everything to do with our people; including
recruitment, training, career path and
structures. We have also undertaken our first
People Engagement Survey which saw a
strong response rate of 67%.
The survey highlighted a number of areas
for improvement that we were aware of,
however, what it served to confirm was
how important those issues were for our
people. It also demonstrated that we
have a very healthy level of engagement
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International expansion
New products and services
The future
We are pleased with our moves towards
Alongside our Engaging People Executive
We are ending the year in a much stronger
international expansion and our German
(EPE), 2015/2016 also saw the creation of
position than we started it. There has been
acquisition has been particularly successful.
our Service Delivery Executive (SDE) to drive
much consolidation. We have made good
The teams in Munich and Cologne are filled
our ‘doing things differently’ agenda from the
strides in our Commercial Services Division
with great people that we’re lucky to have as
client perspective. Products and services
and developed a clear line of sight on how we
part of the DWF family. We have also increased
help support our clients over and above their
need to evolve our Insurance Services Division.
our commitment to Dubai through recruitment
need for traditional legal advice, and are
We need to continue to invest in our people
and investment in new, larger office space for
improving our overall offer and competitive
and the development of their talents across
2016 / 2017.
edge, strengthening our positioning as a legal
the board, not just at Partner level. One of our
business. Particular success during the last
five core values is to be ‘Better Together’,
We will continue to look at overseas partnerships,
12 months has surrounded the launch of the
and I believe that as a business everyone has
as well as organic growth, but it is a long and
dwf draft and dwf resource services.
a part to play, and it is the role of the senior
complex journey finding the right organisations
management function to ensure our people are
to join forces with. Partners will be encouraged
There is absolutely no doubt that we have
given this opportunity. Not only to support our
to build on international opportunities as they
an outstanding and differentiated offer. Our
clients, but to develop the long term, rich and
arise to support our goal for a truly integrated
clients have always been impressed by DWF’s
fulfilling careers that we want for our people
international operation. However more
service and professionalism. Our Client
at all levels. It’s also time for us to introduce
importantly, as with all our expansion activities, it
Development Executive (CDE) supports our
more of our products and services to more
will always be driven by client need.
drive to understand our clients and shape
of our clients. We will succeed by providing
the direction we need to move in for them,
fully integrated, turnkey solutions and building
as well as focusing on improving our output
longer, more sustainable relationships.
Working closely with our
customers and employees,
our partnership with DWF
has delivered exceptional
results, their expert advice and
knowledge truly supports our
claims proposition.
- Mark Merrix, Allianz Insurance,
Occupational Disease Manager
and communication.
Brexit
Brexit has particularly affected the
transactional business sector in recent
months, and we are fully prepared to support
our clients through testing and uncertain times.
In the lead up to the vote, our team formed a
committee to solely focus on how we support
clients and the challenges they are now facing.
The Brexit committee is chaired by Jonathan
Branton, who is independently recognised as
one of the leading experts in the UK on UK &
EU Competition and EU State Aid Law.
with our people, and just how much
they want to be involved with shaping
our future. We have now galvanised
our activities to address the headline
hotspots raised with immediate effect.
The legal world is changing and we have
become adept at adapting with it. Our goal is to
take our clients on this journey of change with
us and demonstrate the real value DWF can
deliver. I am absolutely certain we are driving
this business in the right direction and the next
12 months will certainly see us successfully
build on the frameworks we have put in place.
2015/2016 has been an
important year in DWF’s
strategic development, and in
its shift from being a law firm
to being a fully integrated
legal business. The face
of law is changing and we
are absolutely prepared to
embrace change.
Strategic Progress
The power of three
Our clearly defined strategic intent
was set out in 2014. We wanted to
change the rules of engagement
and identify as a legal business not
a law firm. To set us on this journey
we articulated three clear strands
to our strategy. These strands have
helped us evolve our business in a
changing market.
Over the last three years, we have
worked tirelessly to cement the
strands of our strategy into our
business. This has really started to
deliver results. We are building the
framework and the foundations of a
true legal business. We are steadfast
in our commitment to our strategy
and are confident that it underpins
our future.
Strands of Our Strategy
Understanding
our clients
Engaging our
people
Doing things
differently
1. Understanding Our Clients
Understanding our clients
We collaborate with our clients, enabling them
to achieve their commercial objectives.
We lead the way in the development and
use of client tailored technology, using data
as an opportunity to inform better decisions.
Sector insight is key to our ambitious market
strategy. Through greater industry knowledge
and a better understanding of their needs we
provide outstanding benefits for our clients;
smarter decisions, reduced risks, greater
clarity and flexibility.
Why this is important
In repeated research, the number one reason
for clients discriminating between legal
service providers is the degree to which their
business is understood.
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Rybka have enjoyed an excellent working relationship with DWF for a number of years. The team provide cradle to grave
commercial law support, from advising on terms of appointment and associated documentation through to supporting claims and
other contentious matters when these arise. The team are very responsive when dealing with matters on our behalf.
They understand the issues that arise and always do what they say they will do in a timely manner. They have an eye for detail
but also maintain a pragmatic focus on the main issues without getting bogged down. A key benefit in our dealings has been a
willingness to engage with our wider team in an advisory role to provide an insight into issues relevant to us and to demystify the
legal process. - Colin Hodge, Rybka, Director
What we achieved
Why it was important
How we delivered
We developed the
Client Relationship
Management programme.
• To provide our clients with the best possible
• We invested in a client relationship team with
service by acquiring a deep understanding of
their strategic objectives and goals, both at an
individual and corporate level
experienced client relationship managers who work
across the business to ensure a holistic client service
• We provided an independent contact for the client in
• To add more value to our client relationships by
addition to the lawyer handling the transaction
truly putting the client at the centre of our thinking
across the whole business
• To help us develop mutually beneficial, long term
relationships with our clients.
• We held regular Client Service team meetings to
discuss the client experience and set objectives
around improvement/development
• We ensured clients have access to our full range of
service lines, sector experience and international reach
• We ensured that, where beneficial, clients are
offered training, secondments, use of our office space
and products
• We held annual independent client review meetings
undertaken between the relationship manager and client.
We established the
Client Development
Executive (CDE).
• To provide strategic direction and support to
• We provided an independent review body for the way
the business regarding the client experience we
have developed an executive team made up of
senior leaders within DWF. Chaired by the Client
Development Director, the group meets monthly
and disseminates advice/information relating to
developments that can support our client service
• To ensure that we are continually improving the
level of service to our clients and closing the gap
between our clients’ expectation and perception.
clients are being managed in the business, which
challenges how we can improve our service offering
• We discussed and developed new initiatives to
enhance the client experience e.g. development of new
products intended to save costs and improve delivery
of our service.
2. Engaging Our People
Engaging our people
The way we do business is based on our
core values and reflects the behaviours that
we want to be known for. We strive to recruit,
nurture and retain high quality and motivated
lawyers, talented managers and inspiring
leaders. We look for people who want to
make a difference and don’t shy away from
challenging the norm. This, we believe, is what
enables us to attract the best people, work for
the best clients, collaborate with outstanding
organisations and to attract future business.
Why this is important
We recognise that by engaging our people
we will drive our business responsibly and
effectively. We want to create opportunities
for our people to make a difference, further
their careers and generate a sense of pride
and belonging to DWF.
What we achieved
Why it was important
How we delivered
We focused on leadership
development.
• To support our leaders who are required to inspire
and motivate our people through transformational
change, recognising that leadership matters
• To help create strong and coherent leadership
role models at all levels of the business, now and
in the future
• We introduced a C Suite Executive Development
Programme
• We designed and delivered a leadership
workshop for 90 of our business leaders. Key
outputs and themes were cascaded to our wider
leadership population
• To develop inspiring leaders who will ensure our
• We introduced 360 feedback.
people connect with our strategy and vision.
We established the Engaging
People Executive (EPE).
• To ensure our people feel connected to, and
interested in, our business so that they can
contribute fully
• We identified EPE Members from across the
business to reflect a broad range of career levels,
career paths, experience and views
• To promote ownership of our people
investment strategy.
• We led engagement activities that supported our
business strategy and positively influenced the
employment experience of our people.
We conducted our first People
Engagement Survey.
• To inspire honest feedback and identify the areas
• Teams were encouraged to create action plans in
of improvement we need to focus on
response to the feedback
• To successfully create a culture which supports
openness and honesty, it’s important that we
listen to the opinions and ideas of our people.
• We maintained the visibility of the survey outputs
and communicated progress
• The EPE created momentum to address the
firm wide priorities identified and continue to
communicate progress.
We launched the next phase of
the dwf academy.
• To empower our people to drive their own personal
development plans, and build skills outside of the
core role requirements
• We strengthened our 70:20:10 blended
learning offering
• To continue investment in learning and
all and accessible via mobile devices
development, a top priority identified by our people.
• We made online learning material available to
• Face-to-face programmes aligned with our
performance criteria.
We enhanced our agile working
offering – including a focus on
supporting working parents.
• To address the changing expectations of how our
• We saw 28% of our people designated as agile/
people want to work
flexible workers
• To be able to provide support through life’s
transitions
• We focused on creative workplace design,
innovative technology and workplace culture
• To ensure our people had a positive experience
• We enhanced Maternity/Adoption Pay, Paid
when using our working policies
• To learn from the experiences of our people so we
can then replicate that learning and improvement
process in other business areas.
Paternity Leave and launched our ‘Baby Buddy
Scheme’ for new parents
• We launched a Hub containing policies, guidance
and support to enable different work styles.
We developed our performance
Management.
• To help our people see the connection between
their individual objectives and the wider
objectives of the business
• We reviewed our Performance Management and
enhanced our Objective Manager software to
make it easier to align individual objectives to
business strategy.
• To ensure we are all actively working towards the
achievement of our business goals.
3. Doing Things Differently
Doing things differently
Through innovation, use of leading edge
technology, multifunctional teams and
appropriate geographical alignment, we
enable our lawyers to provide a trusted and
transparent service. Our ability to deliver high
value and a range of specialised services
whilst driving unrivalled efficiency and
automation in process work is essential to
our clients. We secure the alignment of our
resources ensuring we deliver great services
in the right way for our clients and for us.
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Why this is important
Our market is developing – and quickly.
This situation provides us with an enormous
opportunity for growth and diversification.
What we achieved
Why it was important
How we delivered
We developed dwf draft.
Designed to enable our teams to produce
entire suites of legal documents, contracts
and reports in a fraction of the time it
currently takes.
The software is also used by our clients
who are striving to do things better.
Our people tell us that having dwf draft
has given them a strong proposition and
enabled them to have different types
of conversations, deepening client
relationships.
For more information visit: dwf.law
• To enable our people to dedicate more time
to bespoke drafting and getting documents
negotiated and agreed quickly
• To improve quality assurance and risk
management
• To achieve significant time and cost
efficiency savings
• To enable a consistent approach across
multiple teams and locations
• To enhance client experience.
• We invested in market leading document
automation software ContractExpress and
combined it with expert legal know-how,
precedents and consultancy capability.
The software was immediately embraced by our
people who were keen to take it to clients, owing to
the collaborative design approach we take with all
our technology solutions
• We piloted a document automation subscription
service for clients to use in-house so they can also
benefit from the efficiency and consistency it brings.
This helps us add value to clients as they can avoid
having to make a large upfront capital investment to
achieve the same goals
• We collaborated with document automation specialist
BAM legal and software provider Thomson Reuters,
and recruited dedicated people with hybrid skills to
drive the initiative.
We developed dwf resource.
• To provide clients with a single point of
• We’ve taken a phased approach:
This is a comprehensive resourcing
service where clients can choose from
three different resourcing options to suit
their individual requirements:
1. DWF secondees
2. DWF accredited legal consultants
3. DWF sourced contract lawyers.
For more information visit: dwf.law
We launched the dwf legal
support centre.
This is a resourcing option designed
to provide legal support services more
efficiently in order to meet the evolving
demands from clients for more cost
effective legal services.
The teams have the ability to flex resource
at short notice as workloads fluctuate,
enabled by processes and workflows to
enhance the speed and efficiency
of service.
For more information visit: dwf.law
contact via Client Partners who will facilitate
all people resourcing needs
• To provide a high calibre resource
• Phase one, was to get a clearer approach for
our secondment offering. During this phase we
spotted strategic benefits internally
• To provide cost certainty as all services are a
• Phase two, will be about ongoing development
fixed price for agreed periods
and improvement
• To save time compared to a direct
• For clients it’s helping most where traditional
recruitment process
recruitment options are unavailable
• To provide flexibility from the multiple
service options - a key part of our own
resourcing model.
• We appointed a dedicated Resource Manager who
oversees the service delivery and the overall client
experience.
• To facilitate an increased service delivery
• We created a team of legal specialists who ensure
operations are aligned effectively to enable the efficient
delivery of specific types of legal work
• We set up the centre to operate as either a stand-alone
resource or integrated alongside our specialist lawyers
and other providers
• We are flexible and transparent, with numerous pricing
options available to suit different clients and work types.
for clients – adding value. It also:
• Provides access to flexible and
scalable resource
• Significantly reduces costs on
routine work
• Provides quality assurance as an
integrated part of a major UK legal
business
• Saves time as it enables
experienced lawyers to focus
on more strategic and complex
elements of work.
Our
Values
Our values are at the heart of
everything we do and are used as a
benchmark for many of our strategic
decisions, particularly when growing
and developing our business. The
values we share and uphold help to
define and reinforce our culture.
Attend to details
Paying attention to every last detail is the right
way to ensure that clients experience the very
best of DWF.
Behaviours and actions
•
Communicate effectively
and professionally
• Deliver on your objectives and targets
•
•
Give and encourage
constructive feedback
Understand your impact on our
commercial and financial achievement
• Say thank you.
Attend
to details
Disrupt to
progress
Disrupt to progress
Just because there’s an established way
of doing things, it doesn’t mean it’s the
best way.
Behaviours and actions
• Champion new ideas
• Embrace and promote change
•
Seek opportunities for improvement
and growth
• Have an opinion and get involved
• Pause. Think differently.
Always
aim
higher
Be better
together
Keep all
promises
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Always aim higher
By refusing to do only the minimum and
reaching further every time, we expand the
realm of what’s possible.
Behaviours and actions
• Strive to beat expectations
• Deliver service excellence
•
Immerse yourself in your field
• Be a role model for best practice
• Drive development in yourself and others.
Be better together
By supporting each other and working as a
team, we can achieve more for our clients
and ourselves.
Behaviours and actions
• Connect across the business
• Recognise, respect and value each other
• Be visible and accessible
• Promote knowledge sharing
• Encourage, enable and empower others.
Keep all promises
A promise is a promise, no matter how large
or small. By keeping promises we build trust,
loyalty and commitment.
Behaviours and actions
• Listen carefully, promise accordingly
• Take ownership
• Be transparent and genuine
• Do what you say you will
• Have a ‘can do’ attitude.
Creating
Sustainable Value
We aim to create sustainable value for our
clients, our people and the communities in
which we live and work. True value creation
is a reciprocal process and one in which we
aim to keep the balance just right.
and services which are aligned to their
commercial reality. Meeting our clients’
needs is at the heart of our continuing drive
to do things differently.
Communities
Our communities include those in which we
live and work. Those that touch the lives of
our people day by day.
People
Clients
Our clients range from FTSE 100 multinational
household names to private individuals, from
both the public and private sector. Our client
base spans both UK and international markets.
We create value for our clients by providing
intelligent and insightful legal advice
Our people include everyone who has a part
to play in delivering client service excellence
on behalf of DWF to our clients.
We create value for our people by offering
fulfilling and rewarding careers and
continuing to invest in their development and
care about their wellbeing.
We create value for our communities
by recognising and acting upon the positive
impact we can have on current and
future generations.
How we
create
value:
1. For our clients
2. For our people
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• We invest in relationships and take time to
understand our clients and their business
• We recognise the challenges faced by our
clients and develop holistic solutions to help
meet their needs
•
We challenge ourselves to think differently to
support our clients in delivering on their objectives
• We engage our people who strive to deliver
excellence in everything they do
• We leverage technology to do more
for our clients
•
We connect our diverse knowledge and
experience to make a bigger impact.
How our clients create value for us:
•
•
•
They invest time in building relationships
They provide us with insight into their business income
They provide long term stability for our business
• Client-centricity drives our continuous improvement.
• Our people can expect a supportive, diverse,
well-connected and inclusive environment
•
•
•
•
They can expect to be empowered and encouraged
to deepen their skills, knowledge and expertise
They can expect a manager who is helpful and enabling
They can expect to be recognised and rewarded for
going further, thinking differently and living our values
They can expect opportunities to apply their strengths
and further their careers.
How our people create value for us:
•
Our people invest their time and resources into making
our business a success
•
They have skills, experience and knowledge that drive
continuous improvement
•
Their engagement with our business objectives helps
us build a sustainable business
•
Their commitment helps build stability for our clients
and colleagues.
3. For our communities
•
We focus on transformational activities that we believe
have the most impact
& environment
• We collaborate and partner to build strong communities
• We actively support communities for the long term
•
•
We apply our expertise to inspire confidence and
develop employability skills
We challenge our people to make a difference through
fundraising for our Charitable Foundation and volunteering
• We actively manage our carbon emissions
• We externally audit our sustainability performance.
Value to DWF:
• Trust and mutual respect builds community diversity
• Enrichment for our people
•
Insight above and beyond our immediate market
• A sustainable world for generations to come.
Corporate Social
Responsibility
We are driven to embed CSR into the way
we do business, based on our fundamental
belief that our values matter. They protect
our business whilst creating competitive
advantage. To approach CSR in this way
helps differentiate our business to clients, and
goes a long way towards building stronger
long-lasting relationships.
Looking outside of DWF, embedding CSR into
our business helps build goodwill within the
communities in which we live and work, and
demonstrates our commitment as a business
to behave responsibly and sustainably.
To help us achieve this we are increasing
our CSR transparency and accountability
and establishing clear safeguards on the
application of international standards.
Community investment strategy focus
Our community investment strategy is
focused on education, employability, health &
wellbeing and homelessness. We know that
without thriving communities and talented
people our business won’t be sustainable,
so we have a responsibility to contribute
to community prosperity by continually
innovating, learning and improving.
To support our strategy we have worked hard
to transition from ad hoc tactical community
activity to a strategic programme focusing
on the social issues most relevant to our
business and communities, driving activity
where it’s needed most. Their resonance is
measured through take up of volunteering
opportunities and feedback – this includes
regular dialogue with our local CSR teams
and our People Engagement Survey.
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How We Add Social Value
What we do
Why we do it How we do it
• To reduce unemployment and improve
opportunities for those furthest from
employment, changing perceptions
amongst employers of talent and where it
is sourced
• 5 STAR Futures
• DWF Foundation
• Volunteering
• To create a lasting skills legacy for local
people through the training they receive
• Engaging our people
• To help build more resilient communities
through a focus on skills development,
aspiration, confidence and wellbeing
• To create economic, educational, social
and cultural opportunities that provide
individuals with connections outside
their communities to help break the
intergenerational cycle of poverty.
• Investing in the strategic implementation of our
CSR programme
• Measuring our performance (people engagement
survey/benchmarking).
For more information visit: dwf.law
We identify the social issues
that are most relevant to our
business and most pressing to
the communities we work with.
We work in partnership with
our communities leveraging
our combined expertise for
mutual benefit.
We plan and manage our
community investment using the
most appropriate resources to
deliver against our targets.
We inspire and engage our
employees, clients and
suppliers to support our
community programmes.
We measure and evaluate the
difference that our investment
has in the community and on
our business, and strive for
continuous improvement.
Achievements
What we achieved
Why it was important
What the benefits are
We maintained our BITC
CommunityMark - the UK’s only
national standard that publicly
recognises excellence in
community investment.
We worked with the Government
to design the Legal Trailblazer
Apprenticeships scheme, and
subsequently launched it within DWF.
We became a signatory of the United
Nations Global Compact business
principles.
We launched our first ever People
Engagement Survey.
We are one of only 34 businesses in the UK
to currently hold BITC’s CommunityMark.
Maintaining this standard supports our goal of
delivering deliberate and impactful social value,
strategically. It also gives us a credible track record of
sustained positive impact.
Recruiting our first cohort of apprentices will allow us
to develop and invest in future talent for the business
in a sustainable and socially responsible way, in line
with our community investment strategy (education
and employability).
Being signatory to the contract makes us more
accountable to acting in a responsible and
sustainable way.
It also steers us towards business partners/suppliers
who share the same commitments and beliefs, going
someway to de-risk future relationships as we grow
internationally.
The feedback clearly identified a number of immediate
priorities that we need to focus on, and activity to
identify and act on the issues that matter the most to
our people is taking place collaboratively at all levels of
the business.
It provides a great opportunity for candidates
of any age or background, who either want
to start their career as soon as possible or
are looking for a career change, to break
into the legal sector and gain valuable
qualifications through a rigorous
apprentice scheme.
As a business with operations based in
a number of developed countries, as a
minimum we observe the Human Rights laws
and regulations in all of these territories, not
just in the letter but also the spirit.
More than 1,500 people took part, a positive
67% response rate. We were delighted that
so many of our people shared their views.
It’s very healthy for a business to have
this level of engagement and we were
encouraged by the survey findings which
also confirm a strong sense of motivation
and positive wellbeing felt by the majority of
our people.
We are committed to making DWF a great
place to work and we recognise there is
more still to be done to understand the full
story behind the results.
Achievements
What we achieved
Why it was important
What the benefits are
We held our first Diversity Week.
During the week we challenged our people
to think about their approach to diversity
and inclusion, and whether there is anything
they could do differently to help build and
maintain a diverse and inclusive workplace.
We were named in Stonewall’s
Top 100 Employers list 2016 which
showcases the best places to
work for lesbian, gay, bisexual and
transgender (LGBT) employees.
We climbed 91 places and entered
Stonewall’s exclusive Top 100. This is
testimony to our ongoing commitment
to creating a supportive and inclusive
environment for our people.
We were also named as one of the
Top Employers for Working Families.
The research by the charity Working
Families benchmarked employers on flexible
and family friendly working policies and
practices, and saw DWF ranked in the top
10 alongside leading organisations, such as
American Express, Lloyds Banking Group,
Deloitte and the Ministry of Justice.
Our experience has shown that diversity and
inclusion have a positive impact on our business results
and deliver:
• Enhanced client focus and responsiveness: Diverse
teams better understand and relate to clients’ needs,
building trust through an inclusive approach to
doing business
• Talent and productivity: An inclusive workplace is a
magnet for high-quality people and helps us attract
and retain diverse talent, whilst engaging them to
perform at their best
• Improved decision-making: We are aiming for
diversity of thought, opinion and experience. This sort
of diversity leads to better decision-making, thought
leadership, innovation and agile thinking, whilst
helping us avoid institutional blindness.
The lists are a powerful benchmarking tool which
enable us to drive our ambition to create an
inclusive environment.
We inspired our people to get
involved: We committed 7,865 hours
between 1 May 2015 to 30 April 2016.
Valued at £1,367,000.
We are exceeding our volunteering KPI of
30% participation rates across each DWF
location (currently 36%).
This activity is helping to embed CSR into the working
lives of the people at DWF, and to deepen our
commitment to creating sustainable value within
our communities.
We launched our own Charitable
Foundation on 1 December 2015
with the sole aim of providing funds,
resources and support to help
our communities achieve their full
potential. A total of £43,050 has been
granted to local charities so far.
The launch marks a significant step in
evolving our community investment strategy,
transitioning away from nominated charities
supported by our people within their
respective location.
• Wider colleague engagement, more local impact.
As a charity, independent of DWF, its operating
costs are met by DWF, so every penny raised goes
to support good causes. The Board of Trustees are
recruited from across DWF and at all career levels
The foundation enables us to support a more
diverse range of charities than ever before,
whilst ensuring all grants distributed align
to our four community investment pillars
of education, employability, health and
wellbeing and homelessness.
• Through the DWF Foundation we hope to build upon
the excellent work that our local CSR teams already
do with our local communities.
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Our Partnerships
We have worked incredibly hard to build
our reputation as a responsible business.
We value our community partnerships and
see them as powerful enablers to ensure we
stay true to our values, introduce and share
best practice and maintain our focus of being
a profitable and sustainable business.
We will further demonstrate our credentials as
a responsible business through our continued
participation in independent benchmarking
to assess and evolve our performance
in support of our diversity, community
investment and environmental goals.
DWF supports the principles of Human Rights
set out in the Universal Declaration of Human
Rights, the International Labour Organisation
(ILO) core labour standards and is a signatory
of the United Nations Global Compact.
Our partnerships include:
• Business in the Community (BITC)
• Stonewall Diversity Champion Status
• We are a Disability Confident Employer and
have maintained our ClearAssured status –
establishing us as an inclusive recruiter of
disabled talent - we were the first UK law
firm to achieve this
• We have our own, highly commended LGBT
network group, OutFront
• We are a Top 10 Top Employer for
Working Families
• We participate in BITC’s Gender and Race
benchmarking and are currently Silver
Standard on both
• Employers Network for Equality and
Inclusion (ENEI).
Awards &
Recognitions
• In 2015, we were awarded the ‘Closing the
Educational Gap Award’ at the Responsible
Business Awards in Scotland and CSR Firm
of the Year at the Law Awards of Scotland
• We were also recognised as a Finalist in
Business in the Community’s national
School’s Partnership Awards - we were
successfully re-accredited in 2016
• In 2016, LV= awarded DWF The Community
Award which recognised the impact of
our community investment strategy, with
our 5 STAR Futures school engagement
programme being described as ‘a superb
and totally integrated programme’.
5 STAR Futures
5 STAR Futures is our flagship national
education programme which aims to
enable aspirational young people across
the UK to unlock their potential by helping
them increase their confidence, develop
their employability skills and become more
work ready.
We partner with ambitious and aspirational
schools in locations where we have an office
and provide their students with the challenge,
support and knowledge to enable their
potential and help them build sustainable
careers, and contribute to developing
sustainable and vibrant communities.
We also collaborate with trusted business
partners that share our values and support
our purpose, and actively engage our clients
in this programme.
5 STAR is designed to help tackle the negative
impact of 3.6 million children living in poverty.
We focus our efforts on those schools with
an above average number of pupils eligible
for free school meals, that are located in the
20% most deprived areas in the country and
where students are not achieving the national
average A* - C GCSE results.
Business
Overview
Andrew Leaitherland, Managing Partner & CEO
Growth has always been the
mainstay of our strategy and this
year was no exception. Strategically,
our objectives were to continue to
embed our three strand strategy at
an operational level and also in the
hearts and minds of our people.
We also had an objective to develop
our international expansion, a move
that is essential if we are to continue
to meet the needs of our expanding
client base.
A truly differentiated offer
Our continued vision over the last 12 months
has been to respond to market changes and
challenges by continuing to position ourselves
as the legal business known for delivering
legal services differently. By converging legal
expertise, industry knowledge and technology
with an open minded and entrepreneurial
approach, we have delivered results for our
clients in new and increasingly enhanced ways.
Maintaining the connectivity of the three strands
of our strategy is crucial to our future success,
as it is where the strands overlap that it becomes
most powerful.
As a business, our strength comes from our
people’s ethos and commitment to doing things
differently. It’s how we join up all our ways of
working that makes us different. Last year saw
us enhance our service delivery models in order
to provide clients with a range of choices, whilst
ensuring that we deliver services efficiently and
appropriately. What is important to note is that
these enhancements were not simply tactical
moves made in isolation. We strategically pull all
of what we do together, and it’s that output which
is our point of difference. We do lots of things
differently, but it’s how we join them together to
deliver that makes us different.
Moving forwards, our goal is to look at how we
can ‘bundle’ legal services to represent a truly
differentiated offer as a way to better serve our
clients’ needs. As a legal business we are able to
offer more than legal advice.
Our insight into managing legal functions will
help support our consultancy capabilities,
our access to a bank of experienced people
helps support resourcing issues faced by
our clients and 15squared – our innovation
hub – is where we develop technologies that
will help shape the future of managing legal
aspects of our clients’ business.
When these resources are delivered in a joined
up way they really represent the future of law.
Over the last 12 months we have strengthened
our proposition in all of these areas and we have
invested in bringing dedicated people into the
business to make this happen. Now we plan to
focus on providing the services in a way in which
our clients can best consume them.
Engaging our people; training and
development as a key to growth
Fundamentally, client relationships are built
through chemistry - a similar outlook and
approach, and an ability to talk on the same level.
This requires a different mindset and therefore
last year we continued to build comprehensive
training programmes for our people, to help
achieve our vision.
We are keen to demonstrate what good
management looks like in a fast paced
innovative environment – balancing both
consistency and giving people a chance to
shine, delivering both brilliant basics as well
as innovation. As fits with our strategy strand
of constantly doing things differently, this will
continue to evolve. Simultaneously, we will
work hard to attract and retain high quality and
motivated lawyers, talented managers and
inspiring leaders, looking for the opportunity to
shape something dynamic and exciting.
Communication; not just broadcasting
2015/2016 saw us launch our inaugural People
Engagement Survey. The survey, led by our
Engaging People Executive (EPE), was designed
to inspire honest feedback and to identify areas
for improvement that the business needed to
focus on. It was also a way for our people, many
of whom have joined as part of our merger
activities, to be involved in shaping the kind of
culture where career goals are pursued in a
workplace based on mutual respect. In doing
so, it will help us to achieve the superior
performance needed to deliver our strategy and
grow a sustainable business. It was our intention
to use the results to provide baseline data around
the extent to which people at DWF:
• Speak positively about our business
• Recommend DWF as a great place to work
• Feel motivated to do their best in their job
• Feel strongly connected to DWF and its
vision and values
This was important for us, not just because
engaged employees are an essential part
of our strategy but because it enables us to
understand how and where we create value for
the people within our teams. The results of the
survey were presented to the Executive Board
then cascaded throughout the business. I am
pleased to report that we have already started
to act on the feedback received, and what was
enormously evident from the results was the
passion our people have for the business and
their commitment to wanting it to succeed.
Mergers and acquisitions instrumental
to growth
Our geographic expansion has always been
driven by client need. Whilst we have operated
in various international jurisdictions for over
20 years, this year we have continued to
increase and formalise our geographical reach.
Ultimately this was driven by our desire to
provide a more aligned offering to our client
base which is becoming increasingly global.
We also recognise that expansion presents a
significant opportunity for growth, particularly
for our Commercial Services Division.
Our International Steering Committee (ISC)
has been instrumental in the development of
our international proposition and we believe
that we have the advantage of building our
overseas business in the light of the changed
landscape, following the Brexit vote. We intend
to build our business to deliver strength and
resilience, with tailored international exposure
which enables us to meet whatever the future
brings with confidence.
Our first move into international territory took
place with the opening of our Dubai office in
2014/2015 and over the last 12 months we have
built on this proposition.
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We have almost quadrupled our office space
in Dubai’s International Finance Centre (DIFC)
to cater for growing client demand. Following
the recent appointments of Waseem Khokhar
as new DWF Middle East Managing Partner
and Director Jazz Moman, joining from PwC
Legal Middle East and King & Wood Mallesons
respectively, we also plan to further expand our
service line offering within this region.
2015/2016 saw our first major expansion into
Europe. Our merger with BridgehouseLaw in
January 2016 was viewed by the Strategic Board
as a crucial move, particularly with Germany
being the largest economy in the Eurozone.
In BridgehouseLaw we found the perfect cultural
fit and access to a wider network of international
relationships. Our Brussels office, opened in
2015, was an important ingredient for businesses
requiring support around the regulatory
requirements within/surrounding the Eurozone,
and also links well to our Dublin office.
BridgehouseLaw, now DWF Germany, operate
from Cologne and Munich and are supported
by an international network focused on the
Middle East: particularly Qatar, Saudi Arabia
and Israel, and the US. The team advises US
companies expanding into Germany and
German companies expanding into the US on
the full range of commercial issues with particular
expertise in corporate/M&A, distribution,
employment, IT/IP and litigation matters.
Their technical skill, dedication
and responsiveness has been
exceptional. We see DWF as
a true partner to our business
going forward.
- Adam Sable, Pure Scot,
General Manager
15squared
We have created ‘15squared’, a new
business that will focus solely on
innovation and product development.
We already have an unrivalled track record
for innovation, winning numerous awards
in the last 12 months.
By focusing our energy into a wholly
owned, separate business, we will be able
to take the innovation agenda not only to
the next level but, in time, beyond it.
Our responsibilities
A continuing goal for us is to embed CSR
into the way we do business. It is about the
fundamental belief that our values matter.
We believe that living our values enables us to:
Protect the business whilst creating competitive
advantage, attract and retain the best people,
differentiate our brand to clients, build stronger
long lasting relationships, build goodwill with
our local communities and demonstrate
our commitment as a business to behave
responsibly and sustainably.
We will achieve this by continuing to drive
our CSR transparency and accountability,
having clear safeguards on the application
of international standards, and a sustained
commitment to maintain a personal presence
in our local communities.
DWF is committed to going further for
our wider community. From day one
I have been encouraged to get
involved in volunteering opportunities
at local schools and hospitals as well
as making a meaningful contribution
to DWF’s award winning 5 STAR
Futures programme.
Leo Parkington, Birmingham Trainee
Charity begins at home
So far, over £43,000
has been granted to
local charities by the
DWF Foundation.
Diversity workstreams are being managed
through our Partner-led Diversity Steering
Group and we are steadily building a network
of Diversity Champions across the business so
that our people have a voice in the approach
we are taking. We will continue to build our
diverse workforce and inclusive culture as it is
also a key driver of people engagement.
The launch marked a significant step in our
Flexible and agile working
journey to develop a culture of contribution.
It demonstrates that when we all work together
we can make a significant, positive impact
on our communities. We have grown the
foundation organically; it’s powered by our
people. This is quite different to the normal
approach – usually firms ‘buddy up’ with
another service provider; however our goal
was to build on the positivity which surrounds
the existing culture of ‘giving back’ which is
demonstrable amongst our people.
We continue to evolve our thinking to enhance
flexibility and to design a working environment
to give our people the right space to do their
best work, and the services, technology and
line manager capability to support and accept
greater organisational flexibility and different
styles of working.
To achieve this we will continue to empower
agile employees to work anywhere, anytime –
as long as business needs are met. Ultimately,
it is transitioning to a culture where we focus
The business has engaged across all levels
on results and performance instead of time
and it has been brilliant to watch people
and attendance. We have already exceeded
from every area work together, get to know
our target of at least 25% of our people
each other and unite in doing something
designated agile or flexible as their preferred
good. It has also really made a difference to
work style. By 2018, we aim to enable more
see the senior management team attending
than 40% of our people to work in a flexible
charity challenge events to show their
and agile way.
support. People in the business notice and
it really impacts on their positive impression
of the leadership teams.
Diversity and inclusion
We are committed to creating a culture
I am delighted that we held our first ever
that understands and values diversity.
Providing equal opportunities when
recruiting and promoting people, whereby
ability, experience, skills, knowledge,
integrity and diversity are guiding principles
in the day-to-day management of our
business. We recognise that diversity and
inclusion has a direct business impact
through the attraction and retention of talent,
our reputational position in the legal sector,
and in relation to our clients who have clear
commitments in this area.
Diversity Week this year, because it
allowed us an opportunity to challenge
our people to think about their approach
to diversity and inclusion, and whether
there is anything they could do differently
to help build and maintain a diverse and
inclusive workplace. Our experience has
also shown that diversity and inclusion
has a positive impact on our business.
On 1 December 2015 we launched our
Our Dignity at Work and Diversity and
Charitable Foundation with the sole
Inclusion policies support a culture where
aim of providing funds, resources and
our people can genuinely be themselves
support to help our communities achieve
at work and progress on the basis of merit.
their full potential.
We want this to be an inclusive business
and therefore we take great pride in driving
forward this important initiative.
Our Key Diversity and
Inclusion Objectives are:
Ensuring our people
see our commitment
throughout the business
and can identify visible
role models.
Enhancing support
for line managers
to manage diversity
and inclusion
effectively.
Introducing
systems and
processes that
help us to meet
our objectives.
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Future focus
The key to our success will be in finding
During the next 12 months we will continue
The legal market has gone through a
seismic shift. This has been largely driven
by the ‘more for less’ agenda, but also by
new competitors who have been shaking up
market complacency. The need for doing
things differently has never been greater.
Our focus going forwards is to provide
profitable yet cost effective solutions within
the context of a legal business.
We’re continuing to challenge the
status quo in the legal market, driving
transformational change for us and our
clients by doing things differently. Going
forward, we need to capitalise on our
investments which will help us to stay
ahead of changes in the legal market.
This is essential for our financial
performance and growth plans.
kindred spirits. We need to take our business
to assess both UK and international markets
and our clients with us. There’s no doubt
for opportunities amongst clients and
that cultural alignment will be a factor in our
success. Clients see us as a different type
potential partners who would be receptive
to our approach and strategy. We will also
of business. However, we recognise that
be focusing on the development of client
some clients will always think about law in
relationships in line with our business
the traditional way. In these instances it is
strategy. We will be aiming for a seamless
essential for us to link back to our commitment
client experience from cradle to grave,
of understanding our clients. Making sure our
from new business intake to in-depth
offering is shaped and delivered in a way that
understanding of and delivery on needs.
works for the individual client. At this point,
how we operate our business is essential
The next 12 months promise to be as
because price will be a prevailing factor across
challenging as the last, but I firmly believe
all clients. Ultimately, it’s about understanding
we are positioned to capitalise on the
our clients, and servicing them in a way that
opportunities presented to us in order to
represents the most value for both parties.
significantly grow our business.
At DWF, we already have a richness of diversity in terms of thought,
backgrounds, education, cultures and religious belief. Demographics
and societal changes will increase and enrich that diversity.
Our approach to diversity is to ensure it is not only present in terms
of our policies but visible in practice throughout the business and
something I view as critical to our plans for future growth.
Divisional
Reports
Paul Berry, CEO of Insurance Services
2015/2016 was another exciting but
challenging year for the Insurance Sector
and their legal suppliers, and focusing
on understanding and supporting our
clients’ business objectives ensured we
were well placed to dynamically respond
to their changing needs.
A changing market
Our clients require a diverse range of services
from us, meaning we need to be agile and
innovative with our solutions. Our Insurance
Services Division handles large volumes of
claims in a highly automated environment,
which is where our investment in technology
in recent years has begun to pay dividends,
whilst at the same time we are handling
complex and high value claims often with an
international element.
Our growing international footprint will be key
to supporting our clients and will contribute to
the achievement of their business objectives
across policy classes and jurisdictions.
Our marginal reduction in turnover this year
was systematic of our drive to increase
efficiency and investment in technology that
our clients needed from us. Clients should be
able to see a return on their investment with
us and we are increasingly using data and
predictive analytics to target their legal spend,
even though that often reduces volumes of
claims for us. Helping our clients to develop
strategies to identify profitable business,
challenge the right cases and reduce leakage
is essential to their successful long term
business operations, even though it may
reduce our revenues in the short term.
A consultative approach
As a legal business, we think and operate
beyond the immediate client request and
proactively make recommendations on
ways in which to solve their problems and
meet their business objectives. Doing things
differently starts with understanding what
the clients want and need, answering their
requests and questions, but it’s also about
posing others, understanding their strategies
and making intelligent recommendations on
forward business planning.
The role of analytics
We now have a team of business analysts who
not only interpret our own data and work with
clients to identify trends and predict results, but
who also collaborate with our clients to help
them draw information and derive actionable
insight from their own data sets. Understanding
the profit drivers of the businesses that underpin
the claims industry is key. One example is the
significant rise in claims for rehabilitation in
minor whiplash cases often driven not by client
need but by commissions paid behind the
scenes. We have helped clients to identify key
offenders, and challenge, disrupt and evolve
their business models.
Impact of new technologies
We are heavily involved in wider technological
developments impacting the insurance industry,
such as the legal and insurance implications
of a driverless economy and are actively
contributing to the growing public debate.
Artificial Intelligence and predictive analytics are
playing an increasing role in our clients forward
planning and our team of insurance consultants
are working closely with our clients to shape
their approach to ensure that the opportunities
are identified and harnessed.
An international focus
We are seeing an increase in the international
focus to the work we do, both with existing
clients with international reach and through
the London global insurance market.
Our specialist Product Liability team is active in
many jurisdictions, particularly the USA, and in
the last 12 months we have seen real growth in
instructions for our Marine Insurance team with
clients in Europe, Singapore and Malaysia.
Our merger with Fox Hartley, a niche insurance
“Aviva have worked with the large
loss team at DWF for a long time.
As trusted legal advisors, the
team always impress us with their
commercially aware, market leading
individuals who are absolutely aligned
to the Aviva strategy. DWF are also
solid supporters of our Road to
Reform campaigns with a real market
and Government influence.”
Andrew M Wilkinson, Aviva,
Head of Technical, Motor & Liability
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practice, has strengthened our relationships
with Japanese insurers and corporates in
particular. Our Professional Negligence
team is active in the Middle East and many
European jurisdictions, particularly in the
construction sector.
We have also seen significant growth in
Ireland and, following the appointment of
Andrew Lothian as Head of our General
Insurance team in Scotland and Jill Sinclair
as Head of our Scottish Counter Fraud team,
we are seeing significant growth and client
wins north of the border.
Investing in our people
Ultimately we are judged by the quality of our
people. We handle some of our clients’ most
sensitive claims, often in the public eye, and
it is crucial that we guide and support our
clients and their customers through what can
often be stressful issues. Our development
approach includes management and
personal development programmes to equip
our partners and lawyers with the skills
required to build and develop their teams,
and have challenging, meaningful and
positive conversations to deal effectively with
change and conflict.
Our technical training approach ensures that
our people have access to the most up to date
training and development, allowing them to offer
the best possible advice to our clients. Delivered
centrally and through a network of dedicated
Professional Support Lawyers embedded within
the business, we are able to share best practice
and maintain high standards.
The future
The division provides a diverse range of
services with very different challenges and
opportunities. In the volume space, we are
advancing our technological capabilities,
enhancing the analytics we provide on client
data and are seeing increasing opportunities
to offer outsourcing services to support our
clients as they undertake change in their own
businesses. At the other end of the spectrum,
we are investing in new talent to support our
growth not only in complex and international
claims but also corporate, commercial and
regulatory advisory work.
Our client base has never been stronger,
with new clients including Tokio Marine
Kiln Group Limited and Ecclesiastical
Insurance Group, we are optimistic that
we can continue to grow in what is a
disrupted and challenging market.
There will be ongoing investment in the
technology that sits within our Insurance
Services Division, and we plan a thorough
interrogation of how we operate in all areas
of our business. We are dedicating resource
to train our people and to recruit new team
members with specialist skills into the division.
This combined with our effective use of data
enables us to align work effectively, and
supports our commitment to creating value for
our clients and our people.
One of the main reasons for the longevity
of the relationship is that we have
always been very impressed by their
responsiveness. They are a forward
looking, innovative firm who always
seem to grasp what we are looking to
achieve. That combined with a ‘can do’
attitude and strong delivery makes them
a great firm to work with.
- James Barclay, Allianz Legal Protection,
Legal Protection Claims Manager
Divisional
Reports
Stephen Miles, CEO of Commercial Services
Creating an identity for the Commercial
Services Division, which incorporates
Corporate Services, Litigation and Real
Estate, and driving greater connectivity
across the division were our key aims
for 2015/2016.
We wanted not only to improve practice
group performance but also to facilitate
a more integrated approach to service
delivery, adding value to our clients’
businesses whilst creating sustainability
within our own.
A challenging market
A new way of working
Economic uncertainty, both in the UK and
internationally, has increased over the last
six months. This has affected confidence in
the transactional markets affecting, more
particularly, our Corporate and Real Estate
practice groups. In addition, commercial
clients continue to face increasing
stakeholder pressure to deliver more
value for less cost. In the ever increasingly
competitive legal market, they demand that
their lawyers do the same. We must deliver
more for less. We need to embrace change
and must continue to work hard to improve
our service delivery, increasing efficiencies
and creating more value for our clients.
We have excellent clients who really value
how we are doing things differently. They
have embraced the efficiencies that dwf
draft can provide, the flexibility offered to
them by our use of dwf resource and the
additional value provided by our increased
use of the dwf legal support centre.
We are at the forefront of the market when
it comes to new ways of working. We must
make sure we stay there by continually
improving our service delivery and
maintaining our focus on innovation.
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“DWF have more than met our
requirements providing a prompt
efficient service, providing excellent
commercial advice and efficient
reporting. We have no hesitation
in continuing to use them for
Squarestone Growth projects in
Scotland and England and hope to
be working with them more on other
projects including for our residential
business Hub Residential. The
team has been communicative and
responsive and gets things done.”
Robert Sloss, Squarestone,
Joint Founder
We have strong client relationships but
our aim is to broaden these out. Our
comprehensive office network provides the
depth and breadth of experience to allow us
to do this. Our ability to handle both complex
and high volume work gives us a unique
proposition to sell to large national and
international commercial clients requiring
legal services across a range of areas.
Our commitment to innovation and doing
things differently puts us in a strong
position moving forward, but the market
will remain competitive. We must continue
to fully understand and respond to client
needs, investing in the necessary skills
and technologies that this requires. We
are committed to this and look forward
to a strong future focused on up-skilling
our people and building sustainable
relationships with like-minded, forward
thinking clients.
As well as having a highly talented team, DWF consistently demonstrate excellent
transactional management skills, willingness to go the extra mile and always looking
to improve the service to NewRiver. It is a genuine pleasure to be working with a
legal team that are smart, market savvy, loyal and fun and we would not hesitate to
recommend DWF.
- Allan Lockhart, NewRiver Retail, Property Director
Building connectivity
Building connectivity across the division
will help drive increased performance and
further strengthen our client base. This
will help us capitalise on opportunities
to provide a more consistent, intelligent
service to our clients and opportunities for
broadening our relationships and increasing
organic growth.
To facilitate this we created partner roles
in each practice group focused on our
clients, our people and our financial
performance. These partners meet
monthly to share business plans and
ideas across the three groups. They focus
on adding value to our client relationships,
engaging and motivating our people and
the efficient operation of our business.
This has resulted in a number of new
commercial client wins including Swansea
University, Ladbrokes & Coral, Pearson
Plc and Pepkor UK Limited.
The future
Whilst our sales target just eluded us,
we successfully achieved our other
targets. This meant increased profitability
and significant improvements in working
capital. The division is stronger and,
on the back of several high profile
appointments by international clients,
well placed to push forward and achieve
its challenging growth target for the
upcoming year.
“The team at DWF continue to
provide us with a first class
service in the area of litigation and
FCA compliance.
They achieve an unrivalled
performance and value for money.
This is obtained by a detailed
understanding of the commercial
environment in which we operate.”
Shaun Deacon, Santander,
Head of Arrears Management
Governance
Good corporate governance enables
us to create sustainable value for the
benefit of our clients, our people and the
communities in which we live and work.
This part of the review describes the
structures, policies and processes that
facilitate the effective management of
our business.
Our Risk Management and Governance
strategy follows the execution of wider
business strategy, so we can anticipate
and identify the wider regulatory outcomes
and address them accordingly to ensure
compliance. Business improvement is
also central to our Risk Management and
Governance strategy.
To achieve this we put policies in place which
provide mandatory ways of working, backed
by the DWF values which provide a sense
of common direction for our people and
guidelines for their day-to-day behaviour.
Those policies are monitored and tested by an
audit team who regularly undertake assessments
to ensure compliance.
Our changing approach
Over the last 12 months, our internal audit function
evolved to a risk based approach to governance.
As our business continues to expand, it is essential
that our approach to governance adapts with it, in
order to remain fit for purpose.
We have also moved to a system that reviews
operational streams as opposed to individual
partners. For example; complete client file
audit, review of management systems, MI
reports, trends in complaints or outstanding
debt. The change in approach comes from
a clear understanding of where the risks are
likely to be found. This enables us to be more
responsive and therefore more effective on
dealing with potential issues before they arise,
and therefore protecting the business.
This year also saw the formation of our
Audit Committee.
The primary purpose of the Audit Committee is
to provide oversight of our financial reporting
process, the audit process and our system of
internal controls which keep us compliant with
the necessary laws and regulations. This move
was an essential step in the development of
our corporate governance.
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Challenges this year
Competitive advantage
dwf claimbase
Clients are taking a more risk based approach
in terms of their suppliers, as shown by a
marked increase in the number of clients who
want to audit our business. In addition, client
questionnaires have created an increased
interest in how we do things, which has meant
that we have had to define our activities in order
to respond to these requests accordingly.
These requests are undoubtedly resource
and time intensive and it can be disruptive
when auditors are in the business. However,
business excellence is part of our culture
and knowing we are suitably prepared for the
audit means our teams are able to confidently
embrace the process.
External factors
As the legal sector continues to change at
pace, the SRA are reviewing their Handbook,
regulatory approach and Accounts Rules.
This is periodically updated, and the 2011
update moved the regime from rules based
to outcomes based. It is anticipated that the
approach will remain outcomes based; as such
there will be an increase in grey areas which has
the potential to increase risk. In response, we
have invested in our in-house Risk Management
team, so are well equipped to adapt our own
approaches accordingly.
Brexit will also have an impact in time; many of
our industry rules and regulations are EU based.
To manage this, the Risk Management and
Excellence team are linked into the DWF Brexit
Committee, to keep aligned to the rest of the
businesses’ plans to manage the implications
Brexit will bring.
We adapt to and embrace risk by taking a
commercial and intelligent approach. We
truly understand what our risks are which
gives us the insight and backing to make
timely decisions. This is essential to the way
we operate. As a business we capitalise on
opportunities and move forwards at a fast pace.
None of which would be possible without a solid
framework from which to operate.
We are happy with our level of risk because
we are confident in the controls that we have
put in place. Our Risk Register, a traffic light
based monitoring system, is continually
updated so we are always fully aware of the
business’s risk status.
As our business continues
to expand, it is essential that
our approach to governance
adapts with it, in order to
remain fit for purpose.
Future
A business of our size is producing vast
amounts of risk based information and data
that needs managing. To better manage this,
we’re currently investing in the creation of
an intelligent risk management information
tool. This is in progress with dwf claimbase
which will provide access to enhanced MI and
improve our risk management processes. For
long-term sustainability and risk management,
this will be a great step forward.
dwf claimbase is a specialist claims
management software product for the
insurance and legal markets.
Our primary claim management extranet
applications are used by thousands of
individual end-users in the professional
indemnity claims market.
Additionally, we have many hundreds
of users in other insurance market
sectors, such as Liability, Clinical
Negligence, Aviation and Goods
in Transit.
We host these secure online
claim management and reserving
environments on behalf of our clients,
with our clients providing these services
to their business partners and other
relevant parties.
We will continue with the business excellence
agenda to push our strategy of business
improvement forward. To help with this, during
the next 12 months we will be appointing
Excellence Champions and seeking resource
in our international offices.
Backed by
our values
Mandatory
ways of
working
Regulatory
compliance
+
Business
improvement
Risk & Excellence team
Risk management
Business excellence
Our Risk & Excellence team are specialists in
The team supports our business by managing
The team is currently working towards being
their fields, which enables us to understand
risk. Their responsibilities include regulatory
recognised as an Excellence organisation
how we can work within the rules to achieve our
compliance issues, Anti-Money Laundering
under EFQM. This involved managing policies
strategic objectives. It is having a commercial
and Data Protection. The team provides
and procedures of the business, making sure
perspective that’s a differentiator for us. There
internal advice on conflicts of interests, Data
they are updated at all times. The team also
is a synergy between what the team do for us as
Protection and other regulatory matters.
manage the ISO 9001 Accreditation and have
a business, and how we advise our clients.
Team members liaise on behalf of the business
recently been successful in achieving the new
We adapt to and embrace
risk by taking a commercial
and intelligent approach.
We truly understand what
our risks are which gives us
the insight and backing to
make timely decisions.
In order to safely and effectively manage our
risk based approach, we have simplified our
processes and are working more closely with
the fee earning teams to make sure the
supervision is there. We are also making sure
that relationships are developed in such a way
that when things do go wrong, our people are
confident and comfortable to come forwards.
with our regulators in all jurisdictions and
ISO 9001:2015 standard.
are represented on the Compliance and
Risk Management Committee (CRMC) and
Conflict management
support it by managing the risk register. The
team also manage DWF’s insurance portfolio,
including Professional Indemnity, EL/PL and
Management Liability.
The team also deliver accurate and timely
conflict search results to enable fee earners
to determine whether there is a regulatory or
commercial conflict of interest before acting.
A business of our size is
producing vast amounts of
risk based information and
data that needs managing.
To better manage this, we’re
currently investing in the
creation of an intelligent risk
management information tool.
About the excellence model: EFQM
The EFQM Excellence Model provides
a holistic tool for assessing how
effective we are in developing and
delivering a stakeholder focused strategy.
EFQM Excellence Model
Enablers
Leadership
Results
Processes,
Products &
Services
People
Strategy
Partnership
& Resources
People
Results
Customer
Results
Society
Results
Business
Results
Learning, Creativity and Innovation
Corporate Structure
DWF LLP
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DWF (Middle East) LLP
DWF Germany Holdings GbR
DWF (Dublin)
Driving our Business:
Strategic Board & Committees
Strategic
Board
Executive Board
Insurance
Operational
Board
Commercial
Operational
Board
Audit
Committee
Compliance &
Risk Management
Committee
Service Delivery
Executive
Client Development
Executive
Engaging People
Executive
Remuneration
Committee
International
Steering Committee
Strategic
Board
DWF’s Strategic Board consists of
individuals with wide-ranging relevant
backgrounds, experiences, skills and
knowledge, resulting in a favourable
balance that enables the Board to
exercise its tasks and responsibilities,
while fully taking into account business
needs. Board Members gained their
business experience in a broad range of
industries which collectively include
financial services, accountancy, legal
and consultancy.
The objectives of our Strategic Board are to:
• Develop and maintain vision, mission and values
• Develop and drive strategic direction
• Establish and monitor policies and governance
• Ensure governance compliance
• Ensure financial and regulatory accountability
• Maintain proper fiscal oversight
• Maintain effective board and business performance
• Ambassadorial.
Alan Benzie,
Chairman
Alan has been DWF’s Chairman
since 2007; he helps drive and
shape our strategic development.
Before his retirement from KPMG
in December 2003, Alan chaired
its Northern offices and sat on
their UK Board.
Paul Berry,
CEO, Insurance Services
Before moving to a full-time
management role, Paul specialised
in large and catastrophic personal
injury work for insurers. He now
manages the Insurance Services
Division which acts for a variety of
insurers, adjusters, brokers and
corporate clients on a wide range
of insurance issues.
Jonathan Edwards,
Partner, Banking
(Elected Partner)
Jonathan specialises in banking law
and is the head of our Corporate
Banking team. He is highly regarded
and rated by Chambers as one of
the top five banking lawyers in the
North-West UK.
Andrew Leaitherland,
Managing Partner & CEO
As Managing Partner & CEO, Andrew
is responsible for the overall strategic
direction of DWF. Since 2006,
Andrew has overseen major growth
in revenue and people: from £29m
to over £186m and from 560 to over
2,100 respectively.
Stephen Miles,
CEO, Commercial Services
Stephen is responsible for driving
forward the Commercial Services
Division, and for looking at alternative
ways to deliver growth and increased
profitability. Stephen has exceptional
legal and management credentials
having led Pinsent Masons’
Banking & Restructuring, Financial
Regulation, Employment and
Pensions practices in recent years.
David Gray,
Non-Executive Director
David is a non-executive Member
of the DWF Board. After graduating
from Cambridge, David joined the
Leeds office of Eversheds where
he specialised in mergers and
acquisitions. David moved to London
as Eversheds’ CEO in 2003, a position
he held for six years. From 2009
until 2013, David was Chairman of
Eversheds International.
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Ian Slater,
Partner, Insurance Services
(Elected Partner)
Ian joined DWF in 1992. An experienced
litigator focusing on complex medical
issues and technological innovation,
Ian’s particular specialism lies in
the proactive management of personal
injury cases. As a Non-Executive
Director on the Board of 15squared,
Ian is instrumental in driving our
‘doing things differently’ agenda.
Chris Stefani,
Chief Financial Officer
Prior to joining DWF in 2016, Chris
enjoyed a 17 year career with EY
as Finance Director for EMEIA
Advisory, overseeing a $2.7bn
business. Chris oversees all of
DWF’s financial operations in the
UK and internationally, with a focus
on enhancing revenue, improving
profitability and driving working
capital management to support the
management of our growth.
Catherine Williams,
Chief People Officer
Catherine joined DWF in 2006
and is responsible for our people
strategy, HR, business partnering,
organisation learning & development,
and corporate social responsibility.
Catherine has over 23 years’
experience in developing people
strategy and delivering change and
improvement within professional
services businesses.
Supporting Boards and Committees
Committee/Board & Purpose
Objectives
Committee:
Audit Committee (AC).
Meeting Frequency:
Minimum three times per year.
Purpose:
To oversee financial reporting and disclosure.
Committee:
Client Development Executive (CDE).
Meeting Frequency:
Monthly.
• To ensure that financial statements are understandable, transparent and reliable
• To ensure the risk management process is comprehensive and ongoing, rather than
partial and periodic
• To help achieve an organisation wide commitment to strong and effective
internal controls, emanating from the top
• To continually communicate with senior management
• To ensure the internal auditors’ access to the audit committee, encouraging
communication beyond scheduled committee meetings
• To review internal audit plans, reports, and significant findings
• To establish a direct reporting relationship with the external auditors.
• To support and challenge Client Relationship Partners
• To act as a ‘Challenge’ and ‘Ambassador’ partner on opportunities and accounts
• To align new products to improve the quality of our client interactions
Purpose:
To establish, publicise and develop the guiding principles which
will grow profitable enduring client relationships.
• To increase sector insight into our key clients and targets
• To leverage potential from mergers and lateral hires
• To assess strategic opportunity of markets, sectors and geographic locations
• To support the International Steering Committee
• To drive new business generation
• To monitor and leverage reciprocity with intermediaries.
Committee:
Compliance & Risk Management Committee (CRMC).
• To take an overview of the implementation of the risk and compliance
management strategy
Meeting Frequency:
Monthly (exc. Aug, Dec, Apr).
• Review corporate policies relating to compliance with laws and regulations,
ethics, conflicts of interest, and the investigation of misconduct and fraud
Purpose:
To advise the Board on the identification, co-ordination and
prioritisation of risk management issues throughout the business
and to develop a strategy for risk management.
Committee:
Engaging People Executive (EPE).
Meeting Frequency:
Monthly.
Purpose:
To sponsor initiatives that inspire our people to deliver our
business strategy.
• Review current and pending corporate-governance-related litigation or
regulatory proceedings to which the business is a party
• To encourage and foster an awareness of risk management at all levels in the
business
• To identify new areas of potential risk to the business and to ensure that
the business’s systems of compliance are robust and fit for purpose in an
increasingly regulated environment
• To consider any risk and compliance matters that may arise from any companies,
limited liability partnerships or alternative business structures in which the
business may hold a proprietary or legal interest.
• To change attitudes and practices by promoting a clear dialogue with our people
to ensure they feel connected to, and interested in, our business so that they can
contribute fully
• To promote ownership of our people strategy across the business and ensure
initiatives and resources are aligned appropriately.
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Committee/Board & Purpose
Objectives
Committee:
Executive Board.
Meeting Frequency:
Quarterly.
Purpose:
A communication forum and reserved for decisions on firm
wide matters.
Committee:
Service Delivery Executive (SDE).
Meeting Frequency:
Monthly.
Purpose:
To help drive initiatives that will support our strategic intent to do
things differently.
Committee:
Remuneration Committee.
Meeting Frequency:
Bi-Monthly.
Purpose:
To manage all remuneration aspects of the business including
bonus scheme, promotions and pay review.
Committee:
Diversity steering group.
Meeting frequency:
Quarterly.
Purpose:
To oversee and monitor the implementation of DWF’s
diversity strategy.
Committee:
International Steering Committee.
Meeting frequency:
Quarterly.
Purpose:
To oversee, monitor and communicate international strategy,
direction and implementation.
• To ensure the operational performance of the business
• To review and implement those operational aspects that will support the
business in its development.
• To meet clients’ changing needs: to deliver at the right price and in the right way
• To differentiate; to stand out in clients’ minds and win more work
• To integrate our offerings; to bring together our collective expertise
• To improve our margins; to get a better return, and allow more investment
• To engage our people.
• To ensure that we are rewarding all our key people competitively and
also responsively
• To ensure that we incentivise in the right way and consider quality elements of
service beyond simple target driven philosophies.
• To create and maintain a more diverse and inclusive workplace and culture,
as a Top 20 law firm
• To operate within legislative, risk and best practice frameworks enabling
DWF to compete for business
• To meet the needs and expectations of our people throughout their
employment journey
• To meet the needs and expectations of clients through our delivery of
outstanding service
• To encourage our people, clients and suppliers to demonstrate ownership
and responsibility for diversity and inclusion
• To authenticate the firm’s values and brand image, ensuring dignity and
respect is seen and valued as an integral part of the firm’s culture and way
we do business.
• To support existing overseas offices as a priority
• To investigate opportunities driven by client need, taking into account economic
and political issues as well as practical matters
• To recommend strategy, advise the Board and drive implementation
• To sponsor issues and plans amongst the partnership (to include promoting
investments such as office openings)
• To communicate with the partnership and firm as a whole to ensure that we are
pursuing a strategy that is fit for purpose and supported by all stakeholders.
Financial
Review
Chris Stefani, Chief Financial Officer
Building a platform for growth
Our business performance over the last three
2015 set out with an aggressive budget in line
with our significant growth ambition. Whilst
it proved to be overambitious, the results
posted nevertheless represent a credible
performance and our portfolio of clients gives
us a great platform for growth.
years reflects what I would expect after a
period of aggressive M&A activity, with a
number of mid-sized businesses coming
together to form a much larger business.
The last 12 months became about
consolidating our group offer and building
strong foundations for future growth, and
ensuring that the whole is greater than
the sum of its parts. It has therefore been
important to ensure that we have spent both
time and resource on integration activities.
The other key challenge is the continuing
Investing for the future
contraction in the insurance market and this
has impacted on our revenue performance.
However, there is underlying growth in the
business. We have seen some great new
client wins and introduced new and more
efficient ways of working. As a result, despite
the small decline in top line revenue, we
still delivered an increased profit margin.
Top-line contraction and bottom-line profit
improvement shows that we are responding
to the market dynamics.
We have borrowed to fund growth and
integration (locations, systems and people)
but expect to reduce net debt over the
next year as our efficiencies and business
development plans yield results. We are
comfortable with our level of debt as it
serves to aid growth and build a
sustainable business.
International expansion
International expansion is critical as it is a
Connectivity will drive us forward
capability that our current and target clients
We are growing organically and deepening
our relationships with clients. The key
requirement is for us to build a workforce
which understands the wider value that
DWF can bring to clients, not just their own
specialism. We do not describe ourselves
as a law firm – we are a legal business, and
need and request from us. This serves our
agenda for improved client service, and the
fact that our chosen geographies are client
led de-risks expansion and helps us to realise
synergies in a more efficient manner.
Increasing profitability
as such see ourselves as business partners
We need to be smarter on pricing. This is an
to our clients, solving their business issues
industry-wide issue and in this ‘more for less’
through a legal lens.
This approach is part
of our strategy of doing
things differently. We are
well positioned to do this
through the various building
blocks and delivery models
that we have invested in.
This is our fastest route
to growth and is the
way we believe we will
bring most value to our
clients, by bringing them
a comprehensive offering
rather than a point-solution.
economy clients want certainty, but they also
want more options. We need to help our fee
earners scope and price more effectively and
continue to optimise our delivery model.
The future
The future is bright for us. We are at the
forefront of the market, embracing the
changes in the legal sector. Ultimately, our
early stage investment will pay off and keep
us ahead of the pack in a changing market.
A huge amount has been invested into the
business, its systems, central services,
infrastructure and brand. We are led by clear
values and a strong CSR function. We have an
amazing client base and a welcoming, friendly
culture. Doing great work for great clients with
great people, we believe, creates a successful
business. We now have a solid foundation to
deliver strong revenue and profit.
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Revenue
£186.9m
Profit
£20.4m
PEP
£309k
Financial
Reports
Members’ Report
Members’ Responsibilities Statement
Independent Auditor’s Report
Group Profit and Loss Account
Group Statement of Comprehensive
Income
Group and LLP Balance Sheets
Statement of Changes in Members’
Interest
Group Cash Flow Statement
Notes to the Financial Statements
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Trading
Following significant investment in international
growth and restructuring and consolidation of
its UK operations, DWF has announced 2015/16
global revenues of £186.9m, which is a 162%
increase over six years (compared to £71.3m in
2009/10) and a marginal decrease (2%) on last
year’s £191.1m. The group has posted a 6%
increase in net profit from £19.1m in 2014/15
to £20.4m in 2015/16, and a 6.9% increase in
average PEP to £309k. DWF’s UK revenues for
2015/16 are £181.9m.
Within the UK, DWF has undergone major
transformation over the last five years with focus
on restructuring and consolidating post-merger.
This is in conjunction with launching integrated
delivery models and services that offer clients
greater flexibility and efficiency in how they
resource legal work. Developed on a pilot basis
with clients across different industry sectors, the
services have been formalised and rolled out on
a larger scale to the firm’s client base of major
household names and FTSE-listed clients.
DWF made 16 lateral partner hires in the UK in
2015/16 and now employs approximately 2,200
people across 16 locations.
Investments in international growth in Germany,
Dubai, Dublin and Brussels have contributed to
underlying profit improvement, despite reduced
revenues. Additionally, in order to reshape and
refocus their business to address challenges
in the insurance market, the firm has adopted
a strategy of restructuring and consolidation.
Finally, recent mergers give the firm good
prospects for the future.
DWF saw its strongest financial performance in
2015/16 in corporate and real estate where the
firm has advised on some major deals including
advising NewRiver Retail on six strategic
acquisitions totalling £332 million; on Colony
Capital’s £311 million purchase of the Gemini
property portfolio; and advising Whitbread on
its £85 million 389-room hub by Premier Inn
hotel deal in London’s Kings Cross.
DWF undertook a series of UK and
international mergers throughout the year,
as well as opening new offices in Brussels,
and growing its Dubai and Dublin operations.
On 1 January 2016, DWF merged with the
German commercial law firm BridgehouseLaw
giving the firm offices in Munich and Cologne
and strengthening DWF’s capability in the tech
and retail, food & hospitality sectors. The firm
also merged with niche insurance practices:
Fox Hartley (on 1 May 2016) to enhance the
firm’s Lloyds market expertise and help secure
new domestic and international insurer clients,
and Watmores to strengthen DWF’s insurance,
rail and local authority sector capabilities (on
15 May 2015). The mergers have helped secure
major new clients including Tokio Marine Kiln.
Furthering its international expansion plans,
DWF formally opened an office in Brussels in
December 2015 to provide greater competition
and regulatory support to its major UK and
international clients, particularly in the central
and local government, retail, food and hospitality,
transpor, and energy and industrials sectors.
DWF also invested in its Dubai and Dublin
operations. Since launching its first new
international office in March 2015, DWF has
almost quadrupled its office space in Dubai’s
International Finance Centre (DIFC) to cater
for growing client demand. In the last few
months the firm has made two significant
senior appointments: Waseem Khokhar, a
specialist in government legal consultancy
work from PwC Legal Middle East, joined DWF
as Managing Partner of DWF Middle East and
Jazz Moman joined as Real Estate Director
from King & Wood Mallesons.
Funding
The firm continues to be strongly funded by
fixed capital and retained current accounts
of our Members . Due to improved visibility
and strong recurring cash flow, growing in
both commercial and insurance businesses,
the firm was able to put in place a £45m
facility with the help of a syndicate of four
international banks in July 2015. DWF
continues to place significant emphasis on
optimising the firm’s working capital to fund
the daily cash requirements of the firm.
For details regarding the firm as a going
concern, please refer to note one within notes
to the accounts.
Financial outlook
Our net profit financial performance continues
to be a reflection of the decision taken to invest
in the alignment of our operating model with the
firm’s overall strategy and our global expansion
vision. Focus over the last 2 years has very
much been on integration of our people, as well
as consolidation following our mergers and
acquisitions, and the firm continues to assess
resource levels in changing market conditions in
order to create the optimal platform for growth.
We continue to be confident that these
substantial investments in our infrastructure, in
our people, and our technology platforms put us
in a strong market position.
Principal activity
DWF LLP is a Limited Liability Partnership in
England and Wales.
The principal activity of DWF LLP is the
provision of legal services in the United
Kingdom and Ireland.
DWF Germany Holding (GbR), DWF (Dublin),
and DWF (Middle East) LLP provide legal
services outside of the UK and Ireland.
Charitable donations
During the year, the firm made charitable
donations totalling £5,000 to a variety of local
charities (2015: £10,000).
Designated Members
The following Members served as Designated
Members throughout the year and at the date of
this report: AR Leaitherland, PA Berry, IJ Slater,
AG Peacock and JDL Edwards.
The Board
The Board compromises the Designated
Members together with a Non-Executive
Chairman, Alan Benzie, a further Non-Executive
Director, David Gray, Interim CFO Carole
Thompson (resigned 25 November 2015), the
CFO, Chris Stefani (from 18 April 2016), Chief
People Officer, Catherine Williams, Antony
Marsh (resigned 31 January 2016), and the CEO
of Commercial Services, Stephen Miles.
Members’ drawings and capital policy
The Members’ policy on drawings is determined
by the Board. A conservative level of monthly
drawings is established at the start of the
financial year which enables each Member to
draw a proportion of their post-tax profit during
the accounting year with further distributions
being made once the financial results for the
year and allocation of profit have been finalised;
the timing of which is dependent upon the
working capital requirements of the firm.
With the consent of Members , the LLP retains a
provision for tax from their profit shares which is
paid to HM Revenue & Customs on their behalf.
The capital requirements of the LLP are kept
under review by the Board with any proposed
changes being approved by the Members. The
level of Equity Members’ capital contribution is
linked to his or her share of profit. The capital
contribution of Fixed Share Members is fixed
at a standard rate, in line with HM Revenue &
Customs legislation guidelines.
Auditor
Deloitte LLP has expressed their willingness
to continue in office as auditor of the LLP, and
accordingly Deloitte LLP will be proposed for
reappointment as auditor.
Approved by the Board of Members on the
27th October 2016 and signed on behalf of
the Board.
A. R. Leaitherland
I. J. Slater
Members’ Responsibilities Statement
The Members are responsible for
preparing the Annual Report and the
financial statements in accordance
with applicable law and regulations.
• state whether applicable UK Accounting
Standards have been followed, subject to any
material departures disclosed and explained
in the financial statements; and
The Limited Liability Partnerships (Accounts
& Audit) (Application of Companies Act 2006)
Regulations 2008 require the Members to prepare
financial statements for each financial year.
• prepare the financial statements on the going
concern basis unless it is inappropriate to
presume that the Partnership will continue in
business.
The Members are responsible for keeping
adequate accounting records that disclose
with reasonable accuracy at any time the
financial position of the Limited Liability
Partnership and enable them to ensure that
the financial statements comply with the
Companies Act 2006, as applicable to Limited
Liability Partnerships, and in accordance
with the requirements of the Statement of
Recommended Practice Accounting by
Limited Liability Partnership (issued July 2014).
They are also responsible for safeguarding
the assets of the Limited Liability Partnership
and hence for taking reasonable steps for the
prevention and detection of fraud and other
irregularities. These responsibilities are exercised
by the Board on behalf of the Members .
Under that law the Members have elected to
prepare the financial statements in accordance
with United Kingdom Generally Accepted
Accounting Practice (United Kingdom
Accounting Standards and applicable law),
including FRS 102 ‘The Financial Reporting
Standard applicable in the UK and Republic
of Ireland.’
Under Company law as applied to Limited
Liability Partnerships, the Members must not
approve the financial statements unless they
are satisfied that they give a true and fair view
of the state of affairs of the group and Limited
Liability Partnership and of the profit or loss
of the group and Limited Liability Partnership
for that year. In preparing these financial
statements, the Members are required to:
• select suitable accounting policies and then
apply them consistently;
• make judgments and accounting estimates
that are reasonable and prudent;
Independent Auditor’s Report to the
Members of Group LLP
We have audited the financial statements of
law and United Kingdom Accounting
Limited Liability Partnership’s Members those
DWF LLP for the year ended 30 April 2016
Standards (United Kingdom Generally
matters we are required to state to them in
which comprise the Group Profit and Loss
Accepted Accounting Practice), including
an auditor’s report and for no other purpose.
Account, Group Statement of Comprehensive
FRS 102 ‘The Financial Reporting Standard
To the fullest extent permitted by law, we do
Income, the Group and Parent LLP Statement
applicable in the UK and Republic of Ireland.’
not accept or assume responsibility to anyone
of Changes in Members Interest, the Group and
other than the Limited Liability Partnership
Parent LLP Balance Sheets, the Group Cash
This report is made solely to the Limited
and the Limited Liability Partnership Members
Flow Statements and the related notes 1 to 21.
Liability Partnership’s Members, as a body,
as a body, for our audit work, for this report,
in accordance with Chapter 3 of Part 16 of
or for the opinions we have formed.
The financial reporting framework that has
the Companies Act 2006. Our audit work has
been applied in their preparation is applicable
been undertaken so that we might state to the
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Respective responsibilities of
Members and auditor
As explained more fully in the Members’
Responsibilities Statement, the Members are
responsible for the preparation of the financial
statements and for being satisfied that they
give a true and fair view. Our responsibility is to
audit and express an opinion on the financial
statements in accordance with applicable law
and International Standards on Auditing (UK
and Ireland). Those standards require us to
comply with the Auditing Practices Board’s
Ethical Standards for Auditors.
Scope of the audit of the financial
statements
An audit involves obtaining evidence about
the amounts and disclosures in the financial
statements sufficient to give reasonable
assurance that the financial statements are free
from material misstatement, whether caused by
fraud or error. This includes an assessment of:
whether the accounting policies are appropriate
to the group and the Limited Liability
Partnership’s circumstances and have been
consistently applied and adequately disclosed;
the reasonableness of significant accounting
estimates made by the Members; and the
overall presentation of the financial statements.
In addition, we read all the financial and
non-financial information in the annual report
to identify material inconsistencies with the
Matters on which we are required to
report by exception
We have nothing to report in respect of the
following matters where the Companies Act
2006 requires us to report to you if, in our
opinion:
• adequate accounting records have not been
kept, or returns adequate for our audit have
not been received from branches not visited
by us; or
• the financial statements are not in agreement
with the accounting records and returns; or
• we have not received all the information and
explanations we require for our audit.
audited financial statements and to identify
any information that is apparently materially
incorrect based on, or materially inconsistent
with, the knowledge acquired by us in the
course of performing the audit. If we become
aware of any apparent material misstatements
or inconsistencies we consider the implications
for our report.
Opinion on financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the
group and Limited Liability Partnership’s
affairs as at 30 April 2016 and of the group
profit for the year then ended;
• have been properly prepared in
accordance with United Kingdom
Generally Accepted Accounting
Practice; and
• have been prepared in accordance with
the requirements of the Companies
Act 2006 as applied to Limited Liability
Partnerships.
Opinion on other matters prescribed
by the Companies Act 2006
In our opinion the information given in the
Members’ Report for the financial year for
which the financial statements are prepared
is consistent with the information in the
financial statements.
Heather J Cosby BSc ACA
(Senior Statutory Auditor)
for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor
Manchester, United Kingdom
27 October 2016
Group Profit and Loss Account
Year ended 30 April 2016
Turnover
Other operating income
Staff costs
Depreciation
Amortisation of intangibles
Other operating expenses
Operating profit
Net interest payable
Profit on ordinary activities before taxation and Members’ remuneration
and profit shares
Tax on profit on ordinary activities of the subsidiaries
Profit on ordinary activities before Members’ remuneration
and profit shares
Note
2016
£’000
2015
£’000
2
3
4
5
6
186,850
191,133
312
227
(85,322)
(85,328)
(6,054)
(5,233)
(266)
(250)
(49,944)
(52,495)
45,576
(1,137)
48,054
(1,012)
44,439
47,042
(898)
(934)
43,541
46,108
Members’ remuneration charged as an expense
(23,169)
(26,963)
Profit for the financial year available for discretionary division
among Members
20,372
19,145
All results relate to continuing activities.
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Group Statement of Comprehensive
Income Year ended 30 April 2016
Profit for the financial year available for discretionary division
among Members
Note
2016
£’000
2015
£’000
20,372
19,145
Exchange losses on translation of foreign operations
(159)
-
Total comprehensive income available for discretionary
division among Members
20,213
19,145
Group and LLP Balance Sheet
As at 30 April 2016
Note
9
9
10
11
Group
2016
£‘000
314
601
Group
2015
£‘000
382
494
LLP
2016
£‘000
67
30
LLP
2015
£‘000
-
44
17,555
19,709
17,445
19,682
-
-
423
8
18,470
20,585
17,965
19,734
Fixed assets
Goodwill
Other intangible assets
Tangible assets
Investments
Current assets
Debtors
13
101,050
99,449
101,828
98,737
Cash at bank and in hand
9,976
2,905
8,800
2,731
111,026
102,354
110,628
101,468
Creditors: amounts falling due within one year
14
(40,796)
(75,389)
(45,391)
(76,836)
Net current assets
70,230
26,965
65,237
24,632
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
88,700
47,550
83,202
15
(50,805)
(6,093)
(50,805)
44,366
(6,093)
Net assets attributable to Members
37,895
41,457
32,397
38,273
Represented by:
Loans and other debts due to Members
within one year
Members’ capital classified as a liability
24,071
25,932
23,437
25,932
Other amounts
5,892
10,909
2,217
9,940
29,963
36,841
25,654
35,872
Members’ other interests
Other reserves classified as equity
7,932
4,616
6,743
2,401
Total Members’ interests
37,895
41,457
32,397
38,273
These financial statements of DWF LLP, registered number OC 328794, were approved by the Board on 27 October 2016.
Signed on behalf of the Board of Members.
A. R. Leaitherland
Designated Member
I. J. Slater
Designated Member
Statement of Changes in Members’
Interests as at 30 April 2016
Group FY14-15
Other reserves
£’000
Members’
Capital
classified as
Debt £’000
Other amounts
£’000
Total
£’000
Total Members’
interests
£’000
Loans and other debts due to Members
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Net current assets
70,230
26,965
65,237
24,632
Allocation of profit
(27,325)
Members’ interest as at
30 April 2014
Changes in transition to FRS 102
(Note 21)
LLP Members’ interests as at
1 May 2014
Consolidated profit for the financial
year available for discretionary
division among Members
Members’ remuneration charged as
an expense
14,480
23,173
8,039
31,212
45,692
(1,684)
-
-
-
(1,684)
12,796
23,173
8,039
31,212
44,008
-
-
19,145
19,145
-
-
-
-
Members’ interests after profit
for the year
4,616
23,173
Introduced by Members
Repayments of capital
Drawings
Members’ interests as at
30 April 2015
6,464
(3,705)
-
-
-
-
(51,418)
(51,418)
4,616
25,932
10,909
36,841
26,963
26,963
27,325
62,327
-
-
27,325
85,500
6,464
(3,705)
26,963
-
90,116
6,464
(3,705)
(51,418)
41,457
Amounts due to Members
4,616
25,932
10,909
36,841
41,457
Fixed assets
Goodwill
Other intangible assets
Tangible assets
Investments
Current assets
9
9
10
11
314
601
382
494
67
30
17,555
19,709
17,445
19,682
-
-
423
18,470
20,585
17,965
19,734
-
44
8
Debtors
13
101,050
99,449
101,828
98,737
Cash at bank and in hand
9,976
2,905
8,800
2,731
111,026
102,354
110,628
101,468
Creditors: amounts falling due within one year
14
(40,796)
(75,389)
(45,391)
(76,836)
Total assets less current liabilities
88,700
47,550
83,202
Creditors: amounts falling due after more
15
(50,805)
(6,093)
(50,805)
44,366
(6,093)
Net assets attributable to Members
37,895
41,457
32,397
38,273
than one year
Represented by:
within one year
Loans and other debts due to Members
Members’ capital classified as a liability
24,071
25,932
23,437
25,932
Other amounts
5,892
10,909
2,217
9,940
29,963
36,841
25,654
35,872
Members’ other interests
Other reserves classified as equity
7,932
4,616
6,743
2,401
Total Members’ interests
37,895
41,457
32,397
38,273
Statement of Changes in Members’
Interests as at 30 April 2016 (Continued)
Group FY15-16
Other reserves
£’000
Members’
Capital
classified as
Debt £’000
Other amounts
£’000
Total
£’000
Total Members’
interests
£’000
Loans and other debts due to Members
4,616
25,932
10,909
36,841
41,457
20,372
-
-
-
-
Allocation of profit
(17,056)
7,932
25,932
23,169
23,169
17,056
51,134
17,056
77,066
-
-
20,372
-
-
-
-
-
(159)
(159)
2,975
(4,836)
-
-
2,975
(4,836)
-
(45,083)
(45,083)
7,932
24,071
5,892
29,963
23,169
-
84,998
(159)
2,975
(4,836)
(45,083)
37,895
Members’ interests as at
1 May 2015
Consolidated profit for the financial
year available for discretionary
division among Members
Members’ remuneration charged as
an expense
Members’ interests after profits
for the year
Unrealised foreign exchange
translation difference
Introduced by Members
Repayments of capital
Drawings
Members’ interests as at 30 April
2016
Amounts due to Members
7,932
24,071
5,892
29,963
37,895
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Statement of Changes in Members’
Interests as at 30 April 2016 (Continued)
Loans and other debts due to Members
LLP FY14-15
Other reserves
£’000
Members’
Capital
classified as
Debt £’000
Other amounts
£’000
Total
£’000
Total Members’
interests
£’000
Members’ interest as at
30 April 2014
12,921
23,173
8,071
31,244
44,165
Changes in transition to FRS 102
-
-
-
-
-
12,921
23,173
8,071
31,244
44,165
LLP Members’ interests as at
1 May 2014
LLP profit for the financial year
available for discretionary division
among Members
Members’ remuneration charged as
an expense
14,633
-
Allocation of profit
(25,153)
Members’ interests after profit
for the year
2,401
23,173
-
-
-
-
-
14,633
27,365
27,365
25,153
60,589
-
-
25,153
83,762
6,464
(3,705)
27,365
-
86,163
6,464
(3,705)
(50,649)
38,273
Introduced by Members
Repayments of capital
Drawings
Members’ interests as at
30 April 2015
6,464
(3,705)
-
-
-
-
(50,649)
(50,649)
2,401
25,932
9,940
35,872
Amounts due to Members
2,401
25,932
9,940
35,872
38,273
Statement of Changes in Members’
Interests as at 30 April 2016 (Continued)
LLP FY15-16
Other reserves
£’000
Members’
Capital
classified as
Debt £’000
Other amounts
£’000
Total
£’000
Total Members’
interests
£’000
Loans and other debts due to Members
2,401
25,932
9,940
35,872
38,273
Members’ interests as at
1 May 2015
LLP profit for the financial year
available for discretionary division
amongst Members
Members’ remuneration charged as
an expense
17,444
-
Allocation of profit
(13,102)
Members’ interests after profit
for the year
6,743
25,932
Introduced by Members
Repayments of capital
Drawings
-
-
-
2,108
(4,603)
-
-
-
23,004
23,004
13,102
46,046
-
-
13,102
71,978
2,108
(4,603)
-
(43,829)
(43,829)
-
-
17,444
23,004
-
78,721
2,108
(4,603)
(43,829)
32,397
Members’ interests as at 30 April
2016
6,743
23,437
2,217
25,654
Amounts due to Members
6,743
23,437
2,217
25,654
32,397
Group Cash Flow Statement
Year ended 30 April 2016
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Net cash inflow from operating activities
Note
19
2016
£’000
2015
£’000
51,852
53,343
Cash flows from investing activities
Purchase of tangible assets
(2,790)
(10,109)
Purchase of intangible assets
Acquisition of investments
Net cash acquired with investments
(234)
(480)
115
(172)
-
-
Net cash flows from investing activities
(3,389)
(10,281)
Cash flows from financing activities
Repayment of borrowings
(21,216)
(13,298)
Repayment of obligations under finance lease
New bank loans raised
(455)
(63)
39,709
15,280
Payments to or on behalf of the Members
(45,083)
(51,418)
Capital contributions by Members
Repayments of capital
Interest paid
2,560
(4,836)
(1,137)
6,464
(3,705)
(1,012)
Net cash flows from financing activities
(30,458)
(47,752)
Net increase/(decrease) in cash and cash equivalents
18,005
(4,690)
Cash and cash equivalents at beginning of year
Effect of foreign exchange rate changes
Cash and cash equivalents at end of year
Reconciliation to cash at bank and in hand
Cash at bank
Cash equivalents
Cash and cash equivalents
(7,870)
(3,180)
(159)
9,976
-
(7,870)
9,976
2,905
-
(10,775)
9,976
(7,870)
Notes to the Financial Statements
Year ended 30 April 2016
1. ACCOUNTING POLICIES
The principal accounting policies are
summarised below. They have all been
applied consistently throughout the year and
to the preceding year.
General information and basis
of accounting
The LLP is incorporated in the United
Kingdom under the Limited Liability
Partnership Act 2000. The address of the
registered office is given on page 69. The
nature of the group’s operations and its
principal activities are set out in the Members’
Report on page 41.
The financial statements have been prepared
under the historical cost convention, modified
to include certain items at fair value, and in
accordance with Financial Reporting Standard
102 (FRS 102) issued by the Financial
Reporting Council and the requirements of
the Statement of Recommended Practice
Accounting by Limited Liability Partnerships
(issued July 2014).
The prior year financial statements were
restated for material adjustments on adoption
of FRS 102 in the current year. For more
information see note 21.
The functional currency of the LLP is
considered to be pounds sterling because
that is the currency of the primary economic
environment in which the LLP operates. The
Group financial statements are also presented
in pounds sterling. Foreign operations are
included in accordance with the policies set
out below.
The LLP meets the definition of a qualifying
entity under FRS 102 and has therefore taken
advantage of the disclosure exemptions
available to it in respect of its separate
financial statements, which are presented
alongside the Group financial statements.
Exemptions have been taken in relation to
financial instruments, cash flow statement,
intra-group transactions and remuneration of
key management personnel.
Basis of consolidation
The Group financial statements consolidate
the financial statements of the LLP and its
subsidiary undertakings drawn up to 30 April
each year. The results of subsidiaries acquired
or sold are consolidated for the periods from
or to the date on which control passed.
Business combinations are accounted
for under the purchase method. Where
necessary, adjustments are made to the
financial statements of subsidiaries to
bring the accounting policies used into line
with those used by the Group. All intra-
group transactions, balances, income and
expenses are eliminated on consolidation.
In accordance with Section 35 of FRS 102,
Section 19 of FRS 102 has not been applied
in these financial statements in respect of
business combinations affected prior to the
date of transition.
Leasehold
improvements
Fitting out costs
Going concern
These financial statements have been
prepared on the going concern basis. The
LLP meets its funding requirement through
the subscription of capital by its Members and
through an overdraft facility which is due for
renewal on July 2017 as well as a Revolving
Credit Facility committed to July 2018, giving
a stable funding platform from which the
LLP will deliver its strategy and growth plans
during that period.
Having reviewed the LLP’s forecasts and
the risks and uncertainties surrounding the
current demand for legal services, and other
reasonably possible variations in trading
performance, the Members expect to be able
to operate within its banking facilities and in
accordance with the covenants set out in
those facility agreements; accordingly they
continue to adopt the going concern basis
of accounting in preparing these financial
statements.
Intangible assets – goodwill
Goodwill arising on the acquisition of
subsidiary undertakings and businesses,
representing any excess of the fair value of
the consideration given over the fair value of
the identifiable assets and liabilities acquired,
is capitalised and written off on a straight line
basis over its useful economic life, which is 5
years. Provision is made for any impairment.
Intangible assets – other
Separately acquired or developed software
is included at cost and amortised in equal
annual instalments over the estimated useful
economic life. Provision is made for any
impairment.
Intangible assets acquired as part of a
business combination are measured at fair
value at the acquisition date. Subsequently
these are amortised in equal annual
instalments over their estimated useful
economic life. Provision is made for any
impairment.
Tangible fixed assets
Tangible fixed assets are stated at cost net of
depreciation and any provision for impairment.
Depreciation is provided at rates calculated
to write off the cost less estimated residual
value, of each asset over its expected useful
life, as follows:
Term of lease
10% per annum or
remaining life of lease
if lower
15% on a reducing
balance basis
25% on a straight line
basis
20% on a straight line
basis
Fixtures and
fittings
Computer
equipment
Office equipment
Residual value represents the estimated
amount which would currently be obtained
from disposal of an asset, after deducting
estimated costs of disposal, if the asset
were already of the age and in the condition
expected at the end of its useful life.
Financial instruments
Financial assets and financial liabilities are
recognised when the Group becomes a
party to the contractual provisions of the
instrument.
Financial liabilities and equity instruments
are classified according to the substance of
the contractual arrangements entered into.
An equity instrument is any contract that
evidences a residual interest in the assets of
the Group after deducting all of its liabilities.
All financial assets and liabilities are initially
measured at transaction price (including
transaction costs), except for those financial
assets classified as at fair value through
profit or loss, which are initially measured at
fair value (which is normally the transaction
price excluding transaction costs), unless
the arrangement constitutes a financing
transaction. If an arrangement constitutes
a finance transaction, the financial asset or
financial liability is measured at the present
value of the future payments discounted
at a market rate of interest for a similar
debt instrument.
Financial assets and liabilities are only offset in
the balance sheet when, and only when there
exists a legally enforceable right to set off the
recognised amounts and the Group intends
either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.
Debt instruments which meet the following
conditions are subsequently measured at
amortised cost using the effective interest
method:
(a) The contractual return to the holder is (i) a
fixed amount; (ii) a positive fixed rate or a
positive variable rate; or (iii) a combination
of a positive or a negative fixed rate and a
positive variable rate.
Leasehold
improvements
Term of lease
Fitting out costs
10% per annum or
Fixtures and
15% on a reducing
fittings
Computer
equipment
remaining life of lease
if lower
balance basis
25% on a straight line
basis
basis
Office equipment
20% on a straight line
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Notes to the Financial Statements
Year ended 30 April 2016 (Continued)
(b) The contract may provide for repayments
of the principal or the return to the holder
(but not both) to be linked to a single
relevant observable index of general price
inflation of the currency in which the debt
instrument is denominated, provided such
links are not leveraged.
(c) The contract may provide for a
determinable variation of the return to the
holder during the life of the instrument,
provided that (i) the new rate satisfies
condition (a) and the variation is not
contingent on future events other than (1)
a change of a contractual variable rate;
(2) to protect the holder against credit
deterioration of the issuer; (3) changes in
levies applied by a central bank or arising
from changes in relevant taxation or law;
or (ii) the new rate is a market rate of
interest and satisfies condition (a).
(d) There is no contractual provision that
could, by its terms, result in the holder
losing the principal amount or any interest
attributable to the current period or prior
periods.
(e) Contractual provisions that permit the
issuer to prepay a debt instrument or
permit the holder to put it back to the
issuer before maturity are not contingent
on future events, other than to protect the
holder against the credit deterioration of
the issuer or a change in control of the
issuer, or to protect the holder or issuer
against changes in levies applied by a
central bank or arising from changes in
relevant taxation or law.
(f) Contractual provisions may permit
the extension of the term of the debt
instrument, provided that the return to
the holder and any other contractual
provisions applicable during the extended
term satisfy the conditions of paragraphs
(a) to (c).
Debt instruments that are classified as
payable or receivable within one year on
initial recognition and which meet the above
conditions are measured at the undiscounted
amount of the cash or other consideration
expected to be paid or received, net of
impairment.
Financial assets are derecognised when and
only when a) the contractual rights to the
cash flows from the financial asset expire or
are settled, b) the Group transfers to another
party substantially all of the risks and rewards
of ownership of the financial asset, or c)
the Group, despite having retained some
significant risks and rewards of ownership,
has transferred control of the asset to another
party and the other party has the practical
ability to sell the asset in its entirety to an
unrelated third party and is able to exercise
that ability unilaterally and without needing to
impose additional restrictions on the transfer.
Financial liabilities are derecognised only
when the obligation specified in the contract
is discharged, cancelled or expires.
(i) Investments
In the LLP balance sheet, investments in
subsidiaries, joint ventures and associates
are measured at cost less provision for
impairment.
(ii) Fair value measurement
The best evidence of fair value is a quoted
price for an identical asset in an active market.
When quoted prices are unavailable, the
price of a recent transaction for an identical
asset provides evidence of fair value as long
as there has not been a significant change in
economic circumstances or a significant lapse
of time since the transaction took place. If the
market is not active and recent transactions
of an identical asset on their own are not a
good estimate of fair value, the fair value is
estimated by using a valuation technique.
Impairment of assets
Assets, other than those measured at
fair value, are assessed for indicators of
impairment at each balance sheet date. If
there is objective evidence of impairment, an
impairment loss is recognised in profit or loss
as described below.
Non-financial assets
An asset is impaired where there is objective
evidence that, as a result of one or more
events that occurred after initial recognition,
the estimated recoverable value of the asset
has been reduced. The recoverable amount
of an asset is the higher of its fair value less
costs to sell and its value in use.
The recoverable amount of goodwill is derived
from measurement of the present value of
the future cash flows of the cash-generating
units (CGUs) of which the goodwill is a part.
Any impairment loss in respect of a CGU is
allocated first to the goodwill attached to that
CGU, and then to other assets within that
CGU on a pro-rata basis.
Where indicators exist for a decrease in
impairment loss, the prior impairment
loss is tested to determine reversal. An
impairment loss is reversed on an individual
impaired asset to the extent that the revised
recoverable value does not lead to a revised
carrying amount higher than the carrying
value had no impairment been recognised.
Where a reversal of impairment occurs in
respect of a CGU, the reversal is applied first
to the assets (other than goodwill) of the CGU
on a pro-rata basis and then to any goodwill
allocated to that CGU.
Financial assets
For financial assets carried at amortised cost,
the amount of an impairment is the difference
between the asset’s carrying amount and the
present value of estimated future cash flows,
discounted at the financial asset’s original
effective interest rate, where this effect is
deemed material.
For financial assets carried at cost less
impairment, the impairment loss is the
difference between the asset’s carrying
amount and the best estimate of the amount
that would be received for the asset if it were
to be sold at the reporting date.
Where indicators exist for a decrease in
impairment loss, and the decrease can be
related objectively to an event occurring
after the impairment was recognised, the
prior impairment loss is tested to determine
reversal. An impairment loss is reversed on
an individual impaired financial asset to the
extent that the revised recoverable value does
not lead to a revised carrying amount higher
than the carrying value had no impairment
been recognised.
Taxation
The taxation payable on the LLP profits is the
personal liability of the Members, although
payment of such liabilities is administered
by the LLP on behalf of the Members.
Consequently, neither LLP taxation nor related
deferred taxation are accounted for in the
financial statements.
The tax expense represents the sum of
the current and deferred tax relating to the
corporate subsidiaries. The current tax
expense is based on taxable profits of these
companies.
Current tax, including UK corporation tax and
foreign tax, is provided at amounts expected to
be paid (or recovered) using the tax rates and
laws that have been enacted or substantively
enacted by the balance sheet date.
Current tax assets and liabilities are offset only
when there is a legally enforceable right to set
off the amounts and the Group intends either
to settle on a net basis or to realise the asset
and settle the liability simultaneously.
Members’ interests
Members’ capital is repayable on retirement
of the Member and is therefore classified as
a liability. Because Members may retire with
less than one year’s notice and typically have
their capital repaid within one year of serving
notice, Members’ capital is shown as being
due within one year.
Amounts in ‘Loans and other debts due
to Members’ (other than Members’ capital
classified as a liability) would rank pari passu
with other creditors who are unsecured in the
event of a winding up. No restrictions
or limitations exist on the ability of the
Members to reduce the amount of Members
other interests.
Notes to the Financial Statements
Year ended 30 April 2016 (Continued)
Divisible profits and
Members’ remuneration
Members’ monthly drawings on account of
financial year 2015-2016 profits are treated
as automatically allocated as drawn and are
treated as Members’ remuneration charged
as an expense to the profit and loss account
in arriving at profit available for discretionary
division among Members.
The remainder of profit shares, which have
not been allocated until after the balance
sheet date, are treated in these financial
statements as unallocated at the balance
sheet date and included within other reserves.
Leases
Rentals under operating leases are charged
on a straight-line basis over the lease term,
even if the payments are not made on such
a basis. Benefits received and receivable as
an incentive to sign an operating lease are
similarly spread on a straight-line basis over
the lease term.
Provisions
Provision is made for the best estimate of
expected losses from onerous contracts; in
particular, in respect of surplus property.
Revenue recognition and amounts
recoverable from clients in respect of
unbilled work performed
Unbilled fee income is included as unbilled
revenue within debtors. Provision is
made against unbilled amounts on those
engagements where the right to receive
payment is contingent on factors outside
the control of the Group. Income on such
contingent engagements is generally
recognised when the contingent event is
successful.
Foreign currency
Transactions in foreign currencies are
recorded at the rate of exchange at the date
of the transaction. Monetary assets and
liabilities denominated in foreign currencies
at the balance sheet date are reported at the
rates of exchange prevailing at that date.
The results of overseas operations are
translated at the average rates of exchange
during the period and their balance sheets
at the rates ruling at the balance sheet date.
Exchange differences arising on translation
of the opening net assets and results of
overseas operations are reported in other
comprehensive income and accumulated in
equity.
Other exchange differences are recognised in
profit or loss in the period in which they arise
except for:
• exchange differences arising on gains or
losses on non-monetary items which are
recognised in other comprehensive income;
and
• in the case of the consolidated financial
statements, exchange differences on
monetary items receivable from or
payable to a foreign operation for which
settlement is neither planned nor likely to
occur (therefore forming part of the net
investment in the foreign operation), which
are recognised in other comprehensive
income and reported under equity.
Pension costs
The Group makes contributions to the
personal pension scheme of its employees.
The pension costs are charged directly to the
profit and loss account in the year in which
they occur.
Critical accounting judgements and key
sources of estimation uncertainty
In the application of the Group accounting
policies, which are described above, the
Members are required to make judgements,
estimates and assumptions about the
carrying amounts of assets and liabilities that
are not readily apparent from other sources.
The estimates and associated assumptions
are based on historical experience and other
factors that are considered to be relevant.
Actual results may differ from these estimates.
The estimates and underlying assumptions
are reviewed on an ongoing basis.
Revisions to accounting estimates are
recognised in the period in which the
estimate is revised if the revision affects only
that period, or in the period of the revision
and future periods if the revision affects
both current and future periods.
Unbilled revenue/revenue recognition
The valuation of unbilled revenue involves
significant judgement, and affects the amount
of revenue recognised. The valuation is based
on an estimate of the amount expected to
be recoverable from clients on unbilled items
based on such factors as time spent, the
expertise and skills provided and expenses
incurred. Provision is made for such factors as
historical recoverability rates, contingencies,
agreements with clients, and potential credit
risks, following interactions between fee
earners, finance and clients.
In assessing whether unbilled time is
recognised as work in progress at cost or as
unbilled revenue, management are required
to make judgements in determining the point
at which the contingency is resolved and
when the fair value of consideration can be
measured reliably.
Management are also required to assess the
expected net realisable value on certain cases
by reference to the outcomes of previous
matters, which is also considered to be a key
source of estimation uncertainty.
Key source of estimation uncertainty
Impairment of goodwill and
other receivables
Determining whether goodwill and other
assets are impaired requires an estimation of
the value in use of the cash-generating units
to which goodwill has been allocated. The
value in use calculation requires the entity
to estimate the future cash flows expected
to arise from the cash-generating unit and
a suitable discount rate in order to calculate
present value.
Disbursement provisioning
Where possible provisions for irrecoverable
disbursements are identified by fee earners
on a case by case basis. However, certain
areas require a provision to be calculated on
a percentage basis. This is considered to be
a key source of estimation uncertainty due to
the materiality of the figures involved.
Trade debtors provision
The valuation of amounts recoverable and
not recoverable on trade debtors involves
significant judgement. The estimation of
provisions is established based on interactions
between finance, the fee earner and clients,
mindful of the specific circumstances of
clients and individual matters and invoices,
and guided by calculation rules applied to the
aged population of all trade debtors (excluding
those already addressed by more specific
provision).
Intercompany indebtedness and recovery
Management reviews the outlook for each
International office and their current trading
trajectory to ensure that the loans outstanding
can be recovered by the entity.
Professional indemnity insurance claims
The valuation of the probable exposure on the
uninsured portion of professional indemnity
claims also involves significant judgement. The
valuation takes into account known claims and
circumstances to the extent that the firm will
be required to commit its excess. The resulting
reserves are regularly reviewed but claims are
an area of inherent uncertainty.
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Notes to the Financial Statements
Year ended 30 April 2016
2. TURNOVER
Turnover is derived from the provision of legal services in the UK, Ireland and United Arab Emirates and is stated net of disbursements and
value added tax.
The Members consider that disclosure of turnover analysed geographically and by industry sector would be prejudical to the business.
3. STAFF NUMBERS AND COSTS
The average monthly number of employees (excluding Members)
Legal advisers
Support staff
2016
No.
1,267
770
2,037
£’000
2015
No.
1,213
864
2,077
£’000
Aggregate remuneration comprised
Wages and salaries
75,131
74,597
Social security costs
Pension costs
Total staff costs
7,985
2,206
8,420
2,311
85,322
85,328
Staff costs have been impacted by FRS 102 (a requirement to accrue for unpaid staff holiday).
Notes to the Financial Statements
Year ended 30 April 2016
4. OPERATING PROFIT
Operating profit is stated after charging
Depreciation of tangible assets
6,054
5,220
2016
£’000
2015
£’000
Amortisation of intangible assets
Amortisation of goodwill
Foreign exchange loss
Rentals under operating leases
Land and buildings
Other leases
The analysis of the auditor’s remuneration is as follows:
Fees payable to DWF LLP’s auditor and its associates for the audit of the Limited
Liability Partnership’s annual accounts
Fees payable to DWF LLP’s auditor and its associates for other services to the Group
The audit of DWF LLP’s subsidiaries
Total audit fees
Other assurance services
Tax compliance services
Other services
127
139
17
8,805
984
55
25
80
9
45
50
Other services include reporting under the Solicitors’ Accounts Rules 1998 (since 6 October 2011- SRA Account Rules),
and merger and acquisitions advice.
Fees payable to Deloitte LLP and its associates for non-audit services to the LLP are not required to be disclosed because
the consolidated financial statements are required to disclose such fees on a consolidated basis.
Total non-audit fees
104
111
139
87
8,131
984
45
9
54
-
41
48
89
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Notes to the Financial Statements
Year ended 30 April 2016
5. NET INTEREST PAYABLE
2016
£’000
Interest payable and similar charges
Bank interest payable on loans and overdrafts
1,104
Other interest payable and similar charges
33
Net interest payable
1,137
2015
£’000
1,149
(137)
1,012
6. TAX ON PROFIT ON ORDINARY ACTIVITIES
Taxation arises within the subsidiary undertakings of the group and represents:
2016
£’000
2015
£’000
Total tax on profits on ordinary activities
UK corporation tax
898
934
The difference between the total tax charge shown above and the amount calculated by applying the standard rate of UK corporation tax to the
profit before tax is as follows:
Tax on group profit on ordinary activities at standard UK corporation tax rate of 20%
(2015: 20.9%)
Profits on ordinary activities before tax
2016
£’000
2015
£’000
44,439
47,042
8,888
9,879
Effects of:
Tax borne by the individual Members
(7,990)
(8,945)
Group total tax charge for year
898
934
7. MEMBERS’ SHARE OF PROFITS
The basis on which profits are shared among the Members is set out in the principal accounting policies.
Average number of Members during the year
2016
No.
228
2015
No.
260
The profit that has been allocated since the year end attributable to the Member with the highest entitlement to profits was £940,355
(2015: £925,416).
8. PROFIT ATTRIBUTABLE TO THE LIMITED LIABILITY PARTNERSHIP
The LLP has taken advantage of Section 408 of the Companies House Act 2006, as applied to Limited Liability Partnerships (Accounts and
Audit) (Application of Companies House Act 2006) Regulations 2008 and has not included its own profit and loss account in these financial
statements. Its own profit for the year available for discretionary division among Members was £17,444,000 (2015 - £14,633,000).
Notes to the Financial Statements
Year ended 30 April 2016
9. INTANGIBLE FIXED ASSETS
Group
Cost
At 1 May 2015
Additions
At 30 April 2016
Accumulated amortisation
At 1 May 2015
Charge for the year
At 30 April 2016
Net book value
At 30 April 2016
At 30 April 2015
Goodwill
£’000
Software
£’000
Development
Costs* £’000
695
71
766
313
139
452
314
382
57
-
57
13
14
27
30
44
548
234
782
98
113
211
571
450
Total
£’000
1,300
305
1,605
424
266
690
915
876
* Development costs have been capitalised in accordance with FRS 102 section 18 intangible assets other than goodwill and are therefore not
treated as a realised loss.
LLP
Cost
At 1 May 2015
Additions
At 30 April 2016
Accumulated amortisation
At 1 May 2015
Charge for the year
At 30 April 2016
Net book value
At 30 April 2016
At 30 April 2015
Goodwill
£’000
Software
£’000
Total
£’000
-
67
67
-
-
-
67
-
57
-
57
13
14
27
30
44
57
67
124
13
14
27
97
44
Notes to the Financial Statements
Year ended 30 April 2016
10. TANGIBLE FIXED ASSETS
Leasehold
improvements
£’000
Fixtures
and fittings
£’000
Office and
computer
equipment
£’000
Assets under
construction
£’000
Group
Cost
At 1 May 2015
13,891
Additions
128
At 30 April 2016
14,019
Accumulated depreciation
At 1 May 2015
Charge for the year
At 30 April 2016
Net book value
At 30 April 2016
At 30 April 2015
6,357
1,465
7,822
6,197
7,534
5,802
157
5,959
3,629
367
3,996
1,963
2,173
28,833
2,726
31,559
18,831
4,222
23,053
8,506
10,002
-
889
889
-
-
-
889
-
Leasehold
improvements
£’000
Fixtures
and fittings
£’000
Office and
computer
equipment
£’000
Assets under
construction
£’000
LLP
Cost
At 1 May 2015
13,891
5,758
28,858
Additions
128
99
2,701
At 30 April 2016
14,019
5,857
31,559
Accumulated depreciation
At 1 May 2015
Charge for the year
At 30 April 2016
Net book value
At 30 April 2016
At 30 April 2015
6,365
1,465
7,830
6,189
7,526
3,629
367
3,996
1,861
2,129
18,831
4,222
23,053
8,506
10,027
-
889
889
-
-
-
889
-
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Total
£’000
48,526
3,900
52,426
28,817
6,054
34,871
17,555
19,709
Total
£’000
48,507
3,817
52,324
28,825
6,054
34,879
17,445
19,682
ASSETS HELD UNDER FINANCE LEASE
The Group has leases which are considered to meet the definition of finance leases and are accounted for accordingly. The net book value of
tangible fixed assets held under finance lease amount to £1,177,000 (2015: £nil).
Notes to the Financial Statements
Year ended 30 April 2016
11. INVESTMENTS
LLP
At 1 May 2015
Additions
At 30 April 2016
2016
£’000
8
415
423
2015
£’000
8
-
8
GROUP INVESTMENTS
The parent LLP and the Group have investments in the following subsidiary undertakings.
Principle place of
business
Nature of business
Proportion of
ownership
Subsidiaries
Direct
Davies Wallis Foyster Ltd*
United Kingdom
Non trading
DWF Services Ltd
United Kingdom
Provision of employment services
Resolution Law Ltd*
United Kingdom
Dormant
DWF Pension Trustees Ltd
United Kingdom
Provision of pension trustee services
Davies Wallis (unlimited)*
United Kingdom
DWF Directors (Scotland) Ltd*
United Kingdom
DWF Solicitors Ltd*
United Kingdom
DWF Secretarial Services (Scotland) Ltd*
United Kingdom
Bailford Trustees Ltd*
United Kingdom
Bailford EBT Trustees Ltd*
United Kingdom
DWF (Nominees) 2013 Ltd*
United Kingdom
DWF (Trustee) Ltd*
United Kingdom
DWF Trustee (Scotland) Ltd*
United Kingdom
DWF Germany Holding GbR**/***
Germany
DWF (Dublin)***
DWF (Middle East) LLP***
Ireland
UAE
Indirect
DWF Secretarial Services Ltd*
United Kingdom
DWF Nominees Ltd*
United Kingdom
15Squared Ltd
United Kingdom
DWF Middle East Group LLP*
United Kingdom
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Dormant
Law services
Law services
Law services
Dormant
Dormant
Software provider
Dormant
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
* Subsidiary undertakings have been excluded from the consolidation on the basis of immateriality.
** The statutory year end for DWF Germany Holding GbR in the period being reported is 31 December.
*** These entities are related entities of DWF LLP since the majority of its Members are also Members of DWF LLP. In substance it is controlled
by DWF LLP and so its results are included in the consolidation.
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Notes to the Financial Statements
Year ended 30 April 2016
12. ACQUISITIONS
ACQUISITION OF TRADE AND ASSETS
On 15 May 2015 the LLP acquired the business and assets of Watmores Solicitors Ltd., a company whose primary activity is
Law services, for consideration comprising £1,089,000. The fair value of the assets acquired was £1,022,000.
The useful life of goodwill on acquisition is 5 years. The acquisition has been accounted for under the acquisition method.
The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group:
Amounts recoverable from clients in respect of unbilled work performed
Fixed assets
Current assets
Debtors
Cash
Book value
£’000
Fair value to
Group
£’000
703
778
33
703
778
33
Total assets
1,514
1,514
Creditors
Other creditors
Total liabilities
(492)
(492)
Net assets
1,022
Goodwill
Satisfied by
Cash consideration
Deferred consideration due within one year
(492)
(492)
1,022
67
1,089
480
609
1,089
Notes to the Financial Statements
Year ended 30 April 2016
12. ACQUISITIONS (CONTINUED)
ACQUISITION OF SUBSIDIARY UNDERTAKINGS
On 1 January 2016 the LLP acquired 100% control of BridgehouseLaw Germany holding GbR and BridgehouseLaw Germany
RmbH, companies whose primary activity is Law services, for consideration comprising £415,000. The fair value of the assets
acquired was £415,000.
Book value
£’000
Fair value to
Group
£’000
Fixed assets
Intangible
Tangible
Current assets
Amounts recoverable from clients in respect of unbilled work performed
Debtors
Cash
Total assets
Creditors
Trade creditors
Other creditors
Total liabilities
4
102
163
401
82
752
(177)
(160)
(337)
Net assets
415
Goodwill
Satisfied by
Members capital introduced
4
102
163
401
82
752
(177)
(160)
(337)
415
-
415
415
In the year ended 30 April 2016, turnover of £970,000 and profit of £189,000 was included in the consolidated profit and loss
account in respect of BridgehouseLaw Germany holding GbR and BridgehouseLaw Germany RmbH since the acquisition date.
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Notes to the Financial Statements
Year ended 30 April 2016
13. DEBTORS
Group
2016
£’000
Group
2015
£’000
LLP
2016
£’000
LLP
2015
£’000
Trade debtors
62,505
61,385
60,006
58,952
Amounts due from subsidiary entities
-
-
4,638
2,832
Amounts recoverable from clients in respect of unbilled work performed
21,347
21,868
20,862
21,515
Unbilled disbursements
3,434
4,191
3,399
4,112
Prepayments and accrued income
13,764
12,005
12,923
11,326
101,050
99,449
101,828
98,737
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts
Net obligations under finance leases and hire purchase obligations
Amounts due to subsidiary companies
Group
2016
£’000
433
463
-
Group
2015
£’000
32,064
43
-
LLP
2016
£’000
433
463
LLP
2015
£’000
32,064
43
15,815
11,586
Trade creditors
20,176
16,516
19,708
16,094
Corporation tax
483
524
Other taxation and social security
7,540
10,380
-
627
Other creditors
3,607
2,111
2,862
-
3,442
1,532
Accruals and deferred income
8,094
13,751
5,483
12,075
40,796
75,389
45,391
76,836
Notes to the Financial Statements
Year ended 30 April 2016
15. CREDITORS: AMOUNTS FALLING DUE GREATER THAN ONE YEAR
Group
2016
£’000
Group
2015
£’000
LLP
2016
£’000
Net obligations under finance leases and hire purchase obligations
139
-
139
Bank loans
40,324
975
40,324
LLP
2015
£’000
975
-
Accruals and deferred income
10,342
5,118
10,342
5,118
50,805
6,093
50,805
6,093
16. BORROWINGS ARE REPAYABLE AS FOLLOWS
Group
2016
£’000
Bank loans
Between one and two years
-
Between two and five years
40,324
40,324
Group
2015
£’000
682
293
975
LLP
2016
£’000
-
40,324
40,324
LLP
2015
£’000
682
293
975
Overdraft due within one year
-
10,775
-
10,775
On demand or within one year
433
21,289
433
21,289
Total bank loans
40,757
33,039
40,757
33,039
Finance leases
Between one and two years
On demand or within one year
Total finance lease
139
463
602
Total borrowings including finance leases
Between one and two years
139
Between two and five years
40,324
40,463
-
43
43
682
293
975
139
463
602
139
40,324
40,463
-
43
43
682
293
975
On demand or within one year
896
32,107
896
32,107
Total borrowings including finance leases
41,359
33,082
41,359
33,082
The bank loans of DWF LLP are unsecured. The finance leases are secured over certain tangible fixed assets and attract
interest at various rates.
Notes to the Financial Statements
Year ended 30 April 2016
17. FINANCIAL INSTRUMENTS
The carrying values of the Group and LLP financial assets and liabilities are summarised by category below:
65
F
I
N
A
N
C
I
A
L
R
E
V
I
E
W
Group
2016
£’000
2015
£’000
Financial assets
Instruments measured at amortised cost
Trade and other debtors
87,286
87,444
87,286
87,444
Financial liabilities
Measured at amortised cost
Loans payable
40,975
22,264
Obligations under finance leases
602
43
Measured at undiscounted amount payable
Bank overdraft
-
Trade and other creditors
31,588
10,775
29,531
73,165
62,613
The Group’s income, expense, gains and losses in respect of financial instruments are
summarised below:
Total interest expense for financial liabilities at amortised cost
1,246
1,012
Interest income and expense
Notes to the Financial Statements
Year ended 30 April 2016
18. FINANCIAL COMMITMENTS
Total future minimum lease payments under non-cancellable operating leases are as follows:
Group and LLP
Leases which expire:
Within one year
In the second to fifth years inclusive
After five years
2016
Land and
buildings
£’000
10,834
34,576
36,721
2015
Land and
buildings
£’000
9,763
30,579
33,348
Other
£’000
1,015
-
-
Other
£’000
-
1,015
-
82,131
1,015
73,690
1,015
19. NET CASH INFLOW FROM OPERATING ACTIVITIES
Reconciliation of operating profit to cash generated by operations:
Operating profit
Depreciation
Amortisation of goodwill and other intangibles
2016
£’000
45,576
6,054
266
Operating cash flow before movement in working capital
51,896
Decrease / (increase) in debtors
Decrease in creditors and liabilities
445
446
2015
£’000
48,054
5,220
250
53,524
(1,180)
2,098
Cash generated by operation
52,787
54,442
Corporation tax paid
(935)
(1,099)
Net cash flow from operating activities
51,852
53,343
During the year the Group entered into finance lease arrangements with a value of £1,057,000 (2015: £nil).
67
F
I
N
A
N
C
I
A
L
R
E
V
I
E
W
Notes to the Financial Statements
Year ended 30 April 2016
20. CONTROLLING PARTY AND RELATED PARTY TRANSACTIONS
In the opinion of the Members there is no controlling party as defined by FRS 102 Section 33.
DWF LLP has relied upon the exemption given in FRS 102 section 33 to not disclose transactions between itself and its 100% subsidiary
undertakings or other entities wholly included within the consolidation.
The Group considers Strategic Board Members as the key management personnel. The total remuneration for key management personnel
for the year total £3,438,000 (2015: £4,082,293).
21. EXPLANATION OF TRANSITION TO FRS 102
This is the first year that the Group has presented its financial statements under Financial Reporting Standard 102 (FRS 102) issued by the
Financial Reporting Council. The following disclosures are required in the year of transition. The last financial statements under previous UK
GAAP were for the year ended 30 April 2015 and the date of transition to FRS 102 was therefore 1 May 2014. As a consequence of adopting
FRS 102, a number of accounting policies have changed to comply with that standard.
Note 1. In the previously reported financial statements, which were presented under old UK GAAP, there was no requirement to include an
accrual for unpaid holiday entitlement. Under FRS 102, this approach is not permitted and the group is required to provide for any holiday
accrued from 1 December, the start of the group’s holiday year, to 30 April, which had not yet been taken by employees of the group. This has
resulted in an additional staff expense on transition and for each year reported.
Note 2. The Group has also been required to recalculate the lease incentives received since transition to spread the incentive over the full
lease term. Under old UK GAAP the lease incentive was spread to the first break clause. This has resulted in the reversal of £87,000 previously
recognised incentives credit. The Group has elected to continue to recognise existing lease incentives which commenced prior to the date of
transition to FRS 102, on the same basis used under the previous accounting framework as permitted under the transition exemptions of FRS 102.
Note 3. The adjustment to the tax charge has arisen as a direct result of the FRS 102 adjustments.
Note 4. In accordance with the Statement of Recommended Practice Accounting by Limited Liability Partnership (issued July 2014) the Group
now accounts for Members’ remuneration charged as an expense as documented in Note 1 to the financial statements.
RECONCILIATION OF MEMBERS’ INTERESTS
Note
Members’ interest under previous UK GAAP
1
2
3
Unused holiday entitlement accruals
Lease incentives
Adjusted tax charge
Group
LLP
1 May
2014
£’000
45,692
(1,682)
-
(2)
30 April
2015
£’000
42,840
(1,287)
(87)
(9)
1 May
2014
£’000
30 April
2015
£’000
44,165
38,360
-
-
-
-
(87)
-
Members’ interests reported under FRS 102
44,008
41,457
44,165
38,273
RECONCILIATION OF PROFIT FOR 2015
Group
£’000
LLP
£’000
Note
1
2
3
4
Profit for the financial year under previous UK GAAP
45,807
42,085
Unused holiday entitlement accruals
Lease incentives
Adjusted tax charge
395
(87)
(7)
-
(87)
-
Members' remuneration charged as an expense
(26,963)
(27,365)
Profit for the financial year under FRS 102
19,145
14,633
Business combinations
The Group has elected not to apply Section 19 Business Combinations and Goodwill to business combinations that were effected before the
date of transition to FRS 102. No adjustment has been made to the carrying value of goodwill and intangibles. Assets subsumed within goodwill
have not been separately recognised.
Investments in subsidiaries
The Group has elected to treat the carrying amount of investments in subsidiaries under previous UK GAAP at the date of transition as deemed
cost on transition to FRS 102.
Manchester
1 Scott Place
2 Hardman Street
Manchester M3 3AA
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
Milton Keynes
3rd Floor, Exchange House
494 Midsummer Boulevard
Milton Keynes MK9 2EA
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
Munich
DWF Germany
Rechtsanwaltsgesellschaft mbH
Prinzregentenstraβe 78
81675 Munich GERMANY
Tel: +49 (0)89 2060 299 60
Fax: +49 (0)89 2060 299 66
Newcastle
Great North House
Sandyford Road
Newcastle upon Tyne NE1 8ND
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
Preston
6 Winckley Square
Preston PR1 3JJ
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
Auditor
Deloitte LLP
2 Hardman Street
Chartered Accountants
Birmingham
One Snowhill
Snow Hill Queensway
Birmingham B4 6GA
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
Bristol (Bull Wharf)
Bull Wharf
Redcliff Street
Bristol BS1 6QR
Tel: +44 (0)117 917 7210
Fax: +44 (0)117 917 7211
Bristol (Redcliff Quay)
Redcliff Quay
120 Redcliff Street
Bristol BS1 6HU
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
Brussels
Avenue Louise 523
1050 Brussels
Belgium
Tel: +32 (0)2 669 07 43
Fax: +32 (0)2 669 07 45
Cologne
DWF Germany
Rechtsanwaltsgesellschaft mbH
Habsburgerring 2
WESTGATE
50674 Cologne GERMANY
Tel: +49 (0)221 5340 980
Fax: +49 (0)221 5340 9828
Dubai
Office 901 & 904
Tower 2
Al Fattan Currency House
DIFC
Dubai P.O. Box 507104
Tel: +971 (0)4 397 8565
Bankers
Barclays
1st Floor
3 Hardman Street
Spinningfields
Manchester
M3 3HF
HSBC
4 Hardman Square
Spinningfields
Manchester
M3 3EB
Lloyds Banking Group Plc
5 St Paul’s Square
Liverpool L3 9SJ
Dublin
5 George’s Dock
IFSC
Dublin
Tel: +353 (0)1 790 9400
Fax: +353 (01) 790 9401
Edinburgh
No. 2 Lochrin Square
96 Fountainbridge
Edinburgh EH3 9QA
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
Glasgow
110 Queen Street
Glasgow G1 3HD
Tel: +44 (0) 141 228 8000
Fax: +44 (0) 141 228 8310
Leeds
Bridgewater Place
Water Lane
Leeds LS11 5DY
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
Liverpool
5 St Paul’s Square
Old Hall Street
Liverpool L3 9AE
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
London
20 Fenchurch Street
London EC3M 3AG
Tel: +44 (0)333 320 2220
Fax: +44 (0)333 320 4440
RBS
1 Spinningfields Square
Manchester
M3 3AP
Santander UK
The Plaza
100 Old Hall Street
Liverpool L3 9QJ
Officers and professional advisers
Designated Members
P A Berry
J D Edwards
A R Leaitherland
S Miles
I J Slater
d i f f e r e n t
t o t h e c o r e
DWF LLP is a Limited Liability Partnership registered
The term Partner is used to refer to a Member of
in England and Wales (registered number
DWF LLP or an employee or consultant with
OC328794). DWF LLP is authorised and regulated by
equivalent standing and qualification. A list of the
the Solicitors Regulation Authority. DWF LLP is also
Members of DWF LLP and of the Non-Members who
recognised as an incorporated practice with the Law
are designated as Partners is open to inspection at
Society of Scotland (registered number 43186). DWF
its registered office, 1 Scott Place, 2 Hardman Street,
in Ireland is a partnership regulated by the Law
Manchester M3 3AA. © DWF LLP 2016
Society of Ireland.
www.dwf.law