Montagu Evans’ profit and turnover declines
Montagu Evans has recorded falls in its turnover and earnings in its latest financial year.
Turnover declined by 14.5% to £54.7m in the year ended 31 March 2023, compared with the previous year, according to accounts filed with Companies House. Profit before tax declined by 38.4% to £14.3m.
The amount available for division among members was £14.1m, down from £23.2m in 2022. For the first time in its financial statements, the business treated distributable profit to partners as operating cash flows, so the sum was recorded as “members’ remuneration charged as an expense”.
Montagu Evans has recorded falls in its turnover and earnings in its latest financial year.
Turnover declined by 14.5% to £54.7m in the year ended 31 March 2023, compared with the previous year, according to accounts filed with Companies House. Profit before tax declined by 38.4% to £14.3m.
The amount available for division among members was £14.1m, down from £23.2m in 2022. For the first time in its financial statements, the business treated distributable profit to partners as operating cash flows, so the sum was recorded as “members’ remuneration charged as an expense”.
The non-partner bonus pool, covering all other staff, shrank by 27% to £4m.
Montagu Evans’ highest-paid member was estimated to take home £791,000, down from £1.5m in the previous year.
The number of limited liability partnership members during the year averaged 42, mostly static on the 44 in 2022. Remuneration per member averaged £337,000, down by 36% on the previous year.
Total compensation for the executive committee, which represented total profit shares of the members and employee remuneration, amounted to just over £3.9m, down from around £4.3m in the previous year.
Montagu Evans said that on the back of “challenging and industry-wide market conditions, the partnership has taken a long-term view and continued to invest in its business, including an increased headcount, extended ESG capability, new business information system and further improved IT infrastructure”.
The firm’s planning team recorded 5% year-on-year growth, with further investment in people and focus on central London, housing and historic environments and townscape, including major schemes in Earls Court, Stansted and across the capital.
[caption id="attachment_1214379" align="aligncenter" width="847"] Montagu Evans’ 2023 graduate intake[/caption]
Rob Bower, managing partner at Montagu Evans (pictured), said: “Even with global volatility affecting every part of the sector, we have kept a clear focus on planning and development, and a strong programme of recruitment, promotion and succession that will position us well for better times ahead.
“Coming off the back of a record-breaking year in 2021/22 these numbers are clearly a disappointment, but we have decided to protect our people and avoid redundancies, focusing on maintaining high levels of client service with properly resourced teams. This latest down cycle will pass, and when it does we will be very well positioned to immediately support our clients. It is times like these when true partnership businesses show their strengths.”
Separately, the consultancy estimated a 2% year-on-year increase in total energy consumption across its leased and serviced offices in London, Edinburgh, Glasgow and Manchester.
Gas consumption was reduced by 63% to 91,024 kilowatt-hours. However, that was offset by a 63% increase in electricity consumption, to 420,446 kWh. The surge was attributed to its Glasgow office relocation to an all-electric building during the period, as well as increased post-Covid office occupancy.
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Photos: Lead image © Gerd Altmann/Pixabay
Montagu Evans’ 2023 graduate intake courtesy of Holistic
