Page 41 - Annual Review 2015-2016

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Members’ Report Within the UK, DWF has undergone major DWF Germany Holding (GbR), DWF (Dublin),
transformation over the last five years with focus and DWF (Middle East) LLP provide legal
on restructuring and consolidating post-merger. services outside of the UK and Ireland.
Trading FINANCIAL REVIEW
This is in conjunction with launching integrated
Following significant investment in international delivery models and services that offer clients Charitable donations
growth and restructuring and consolidation of greater flexibility and efficiency in how they During the year, the firm made charitable
its UK operations, DWF has announced 2015/16 resource legal work. Developed on a pilot basis donations totalling £5,000 to a variety of local
global revenues of £186.9m, which is a 162% with clients across different industry sectors, the charities (2015: £10,000).
increase over six years (compared to £71.3m in services have been formalised and rolled out on
2009/10) and a marginal decrease (2%) on last a larger scale to the firm’s client base of major Designated Members
year’s £191.1m. The group has posted a 6% household names and FTSE-listed clients.
increase in net profit from £19.1m in 2014/15 The following Members served as Designated
to £20.4m in 2015/16, and a 6.9% increase in DWF made 16 lateral partner hires in the UK in Members throughout the year and at the date of
average PEP to £309k. DWF’s UK revenues for 2015/16 and now employs approximately 2,200 this report: AR Leaitherland, PA Berry, IJ Slater,
2015/16 are £181.9m. people across 16 locations. AG Peacock and JDL Edwards.

Investments in international growth in Germany, DWF saw its strongest financial performance in The Board
Dubai, Dublin and Brussels have contributed to 2015/16 in corporate and real estate where the
The Board compromises the Designated
underlying profit improvement, despite reduced firm has advised on some major deals including Members together with a Non-Executive
revenues. Additionally, in order to reshape and advising NewRiver Retail on six strategic
Chairman, Alan Benzie, a further Non-Executive
refocus their business to address challenges acquisitions totalling £332 million; on Colony Director, David Gray, Interim CFO Carole
in the insurance market, the firm has adopted Capital’s £311 million purchase of the Gemini
Thompson (resigned 25 November 2015), the
a strategy of restructuring and consolidation. property portfolio; and advising Whitbread on CFO, Chris Stefani (from 18 April 2016), Chief
Finally, recent mergers give the firm good its £85 million 389-room hub by Premier Inn
People Officer, Catherine Williams, Antony
prospects for the future. hotel deal in London’s Kings Cross.
Marsh (resigned 31 January 2016), and the CEO
of Commercial Services, Stephen Miles.
DWF undertook a series of UK and Funding

international mergers throughout the year,
The firm continues to be strongly funded by Members’ drawings and capital policy
as well as opening new offices in Brussels,
fixed capital and retained current accounts
and growing its Dubai and Dublin operations. The Members’ policy on drawings is determined
of our Members . Due to improved visibility

On 1January 2016, DWF merged with the by the Board. A conservative level of monthly
and strong recurring cash flow, growing in
German commercial law firm BridgehouseLaw drawings is established at the start of the
both commercial and insurance businesses,
giving the firm offices in Munich and Cologne financial year which enables each Member to
the firm was able to put in place a £45m
and strengthening DWF’s capability in the tech draw a proportion of their post-tax profit during
facility with the help of a syndicate of four
and retail, food & hospitality sectors. The firm the accounting year with further distributions
international banks in July 2015. DWF
also merged with niche insurance practices: being made once the financial results for the
continues to place significant emphasis on
Fox Hartley (on 1May 2016) to enhance the year and allocation of profit have been finalised;

optimising the firm’s working capital to fund
firm’s Lloyds market expertise and help secure the timing of which is dependent upon the
the daily cash requirements of the firm.
new domestic and international insurer clients, working capital requirements of the firm.
and Watmores to strengthen DWF’s insurance,
For details regarding the firm as a going
rail and local authority sector capabilities (on With the consent of Members , the LLP retains a
concern, please refer to note one within notes

15May 2015). The mergers have helped secure provision for tax from their profit shares which is
to the accounts.
major new clients including Tokio Marine Kiln. paid to HM Revenue & Customs on their behalf.
Financial outlook The capital requirements of the LLP are kept
Furthering its international expansion plans, under review by the Board with any proposed
DWF formally opened an office in Brussels in Our net profit financial performance continues changes being approved by the Members. The
December 2015 to provide greater competition to be a reflection of the decision taken to invest level of Equity Members’ capital contribution is
and regulatory support to its major UK and in the alignment of our operating model with the linked to his or her share of profit. The capital
international clients, particularly in the central firm’s overall strategy and our global expansion contribution of Fixed Share Members is fixed
and local government, retail, food and hospitality, vision. Focus over the last 2 years has very at a standard rate, in line with HM Revenue &
transpor, and energy and industrials sectors. much been on integration of our people, as well Customs legislation guidelines.
as consolidation following our mergers and
DWF also invested in its Dubai and Dublin acquisitions, and the firm continues to assess Auditor
operations. Since launching its first new resource levels in changing market conditions in
Deloitte LLP has expressed their willingness
international office in March 2015, DWF has order to create the optimal platform for growth.
almost quadrupled its office space in Dubai’s We continue to be confident that these to continue in office as auditor of the LLP, and
accordingly Deloitte LLP will be proposed for
International Finance Centre (DIFC) to cater substantial investments in our infrastructure, in
for growing client demand. In the last few our people, and our technology platforms put us reappointment as auditor.
months the firm has made two significant in a strong market position.
senior appointments: Waseem Khokhar, a Approved by the Board of Members on the
27th October 2016 and signed on behalf of
specialist in government legal consultancy Principal activity
work from PwC Legal Middle East, joined DWF the Board.
DWF LLP is a Limited Liability Partnership in
as Managing Partner of DWF Middle East and
England and Wales.
Jazz Moman joined as Real Estate Director
from King & Wood Mallesons.
The principal activity of DWF LLP is the
provision of legal services in the United
Kingdom and Ireland. A. R. Leaitherland I. J. Slater