RegulationAccounting StandardsWragges reveals one-off £10.5m cost of delayed office move

Wragges reveals one-off £10.5m cost of delayed office move

Wragge & Co hit by "unfortunate accounting treatment", says managing partner Ian Metcalfe.

WRAGGE & CO’S managing partner Ian Metcalfe said the firm has set aside the £10.5m in an accounting provision relating to the firm’s forthcoming move into new Birmingham headquarters in 2014, reports sister publication Legal Week.

The law firm, which will take on around seven floors in Two Snowhill, had initially intended to move into the building in 2011; however construction was delayed due to the recession.

Metcalfe (pictured) said: “It’s an unfortunate accounting requirement related to future costs rather than current costs,” he said. “It’s hugely frustrating from our perspective, as it risks masking our success and people thinking we didn’t have as a good year as we did.”

He added that significant incentives negotiated on the office to be occupied more than offset the £10.5m provision, with the firm signing up to a lengthy rent-free period.

Property services company DTZ is helping Wragges mitigate the costs of concurrent rents, with sub-letting one of the options under consideration.

Wragges’ accounts show that average remuneration per partner stood at £235,000, down from £276,000, as a result of the property cost. Without the exceptional cost, average profit share would have stood at £324,000 – consistent with the profit per equity partner figure released by Wragges.

For more details about Wragges’ performance click here.

Related Articles

Tesco suspends execs and call in Deloitte over profits overstatement

Accounting Standards Tesco suspends execs and call in Deloitte over profits overstatement

3y Chris Warmoll, Writer
US lawmakers call for preservation of cash accounting

Accounting Standards US lawmakers call for preservation of cash accounting

3y Richard Crump, Writer
Betfair pays £80m to investors contrary to accounting rules

Accounting Standards Betfair pays £80m to investors contrary to accounting rules

3y Naomi Rainey, Writer
HP says accounting a 'ridiculous' excuse for Autonomy writedown

Accounting Standards HP says accounting a 'ridiculous' excuse for Autonomy writedown

4y Kevin Reed, Writer
BT criticised over its accounting for network costs

Accounting Standards BT criticised over its accounting for network costs

4y Kevin Reed, Writer
Annual reports serving too many masters

Accounting Standards Annual reports serving too many masters

4y Richard Crump, Writer
BIS warned on consequences of raising audit thresholds

Accounting Standards BIS warned on consequences of raising audit thresholds

4y Richard Crump, Writer
Colin: Don't play fast and loose with accounts

Accounting Standards Colin: Don't play fast and loose with accounts

4y Taking Stock