Numerica launches radical revamp
Numerica this week switched to its radical new structure, hailed by the firm's new managing partner as a unique model that could be used by accountancy firms across the country.
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After going public in October 2001, Numerica has reintroduced a traditional partnership element, but retains the plc as one of the firm’s 70 new partners. The move is an effort to reincentivise key players in the firm after a dismal year of trading, volatility in the share price and forecasts that the group will make a loss of more than £300,000.
According to Jon Lisby, managing partner of the LLP, the switch will help stabilise the share price of Numerica Group, which peaked at 119p soon after launch, but fell to 31.5p in March. On Tuesday, early trading saw the price rise from 35p to 37.5p.
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‘This new model has the best elements of a traditional partnership in terms of motivation and partners being really incentivised, but still having all the benefits of a plc model,’ said Lisby.
More than 90% of the LLP’s capital will come from Numerica plc and the partnership’s results will be consolidated in the plc’s group accounts as a subsidiary. The 69 LLP partners will no longer receive a salary, but will split the profits with the plc ð68.7% to partners and 31.3% to the plc.
Lisby believes the structure also answers major problems faced by smaller firms ð succession and the withdrawal of capital by retiring partners.
Numerica believes this is the only business structure of its kind and will be examined closely by other firms as a new innovation on the theme of consolidators and a possible transformation route for the future.
‘I would be surprised if there weren’t some who follow on from this. It certainly has a place in the market,’ said Lisby.