Barlow Lyde & Gilbert (London)

Our view...

Barlow Lyde & Gilbert has had a tough time of it over recent years. For a while it seemed to be struggling - in 2006, at a time when everyone else was posting record figures, the firm's turnover actually fell by 2%. But that’s not entirely surprising given that the core of BLG's practice is litigation and insurance rather than corporate or finance. In a boom market everyone's too bothered about making money to sue people, and litigators traditionally suffer. Even so, it was disappointing given the firm's high end work - it has one of the best insurance practices in the City, with its insurance litigation and re-insurance work receiving particularly high praise.

So a shakeup was embarked upon. Restructuring included hiring its first non-legal chief executive and a fresh look at, and growth in, the firm’s commercial litigation group. And the ailing firm's fortunes improved in 2007 - which saw an increase in turnover. This continued in 2008/09, where turnover rose once more, this time by 6% to £86.9m. However 2009/10 saw turnover slump by 6.2% to £81.5m and net profit fell by 1.1% to £26.2m. Profits per equity partner currently stand at £350,000 down from the previous year’s £380,000 – definitely not up with the corporate powerhouses, but still relatively respectable for a litigation firm. 

And this year has been one of change.The firm is now under new management and has chosen to consolidate by focussing on core areas of insurance and financial institutions. It also decided to ditch the traditional lock-step remuneration for a merit-based partner compensation system. And associates faced a similar salary shake up as the PQE pay ladder was replaced with a competency based framework.

In terms of headcount, the firm accumulated additional partners from its acquisition of the insurance practice from the now defunct Halliwells. But there have also been a few high profile exits, including the loss of three partners to Clyde & Co, and word on the street is that more lawyers may be looking to jump ship too.

For an 85 partner outfit it has fewer offices than you'd expect. The hideously kitsch London headquarters (“awful offices, the worst thing about working here”) dwarf the offices in Oxford, Machester, Hong Kong, Shanghai and Singapore. And whilst the firm has recently opened a new office in Sao Paulo– it’s still probably not your top choice if you are looking for an overseas experience.

But its small size means it should be a chummy sort of place, and insiders tell us that it's very friendly with trainees in particular having a rollickingly good time of it. “Beautiful people, interesting work, great ethos” beams one senior associate. Another gets straight to the point: “Some hot trainees. Good Friday night drinks. Hours not too bad”.

The concerns that beset many more general mid-sized firms about their future have always seemed to carry less weight with a specialist such as Barlows, although until it really starts to make strides with its corporate department it's never going to be at the top of any salary tables. And the firm's new management seems to have decided that for now Barlows will focus on its core strengths. However, departures combined with the recent announcement of redundancy round suggest that there may be uncertain times ahead for the firm.

But overall, a solid firm with a pukkah reputation for insurance, reinsurance and professional indemnity litigation.

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