Strutt & Parker has now filed Limited Liability Partnership accounts for the year to 30th April 2009. The 27-page document confirms the news released last week by the LLP that revenues fell 25% to £65m and profits for distribution to partners dropped 79% to £3.3m.
What may now interest rivals is the fine detail shown for the first time in these maiden accounts. The 47 equity partners did indeed earn £3.3m, (about £70k each) but they took out £6.2m (an average of £133k each) from the LLP. But this was before £5m of fresh capital (£106k each) was returned to boost a balance sheet hit by the purchase of Lane Fox.
How much Strutt's paid for the residential agent in August 2007 is not known, as the deal is accounted for in final private partnership accounts. But a note suggesting "the unlikelihood" of a £4.5m earn-out for the directors reveals Lane Fox made £865k on a turnover of £13.86m in the year to April 2008.
Strutt's £65m turnover (2008: £86m) is made up of £20m commercial property (£32m) and £45m rural and residential (£54m). The highest earning partner was paid £173k against £1.03m last year. Staff numbers are down from 882 to 742. But average earnings were almost the same at £47k.
Net assets stood at £11m (£19M) in April. Total borrowings were £18.8m (£21.6m). The equity partners have personally guaranteed £10.7m of this figure. In September 2008 Strutt's bankers agreed to waive loan covenants until July 2009. In July revised bank facilities were agreed. But, to repeat one other point made in last week's EG column, Strutt's has made a £5m profit in the six months since April. Next year's accounts will look a lot better.
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