Ţuca Zbârcea & Asociaţii posted a significant rise in gross revenues from 18.5 million Euros in 2008 to 22.7 million Euros in 2009.
The figures do not include the income generated by its secondary office in Cluj-Napoca and neither the revenues obtained by the firm’s separate units of insolvency and intellectual property. Also, the figures do not include the amounts collected by Ţuca Zbârcea & Asociaţii on behalf of various project partners in its capacity as consortium leader, those amounts being paid to the respective partners.
According to the firm`s officials, approximately 85% from the reported gross revenues came from the private sector; the profit rate stood at a healthy 58%.
Ţuca Zbârcea & Asociaţii derived most of its revenues from Energy, Corporate/Commercial Law, Litigation and International Arbitration, Concessions and PPP/Infrastructure work.
The firm pointed to the comprehensive anti-crisis strategy it has introduced since the advent of the crisis as having a material impact on the revenue increase. “The firm's upbeat financial results were mainly strengthened by an effective and flexible policy that we put in place starting with the fall of 2008. Our strategy focused heavily on the quality of our work, and also on key drivers of profitable growth such as energy, infrastructure, restructuring and arbitration areas”, stated Florentin Ţuca, Managing Partner at Ţuca Zbârcea & Asociaţii.
“Another central topic on our agenda was the implementation of efficient cost-cutting measures, especially in regards to the firm’s operational costs. Also, we aimed at maintaining a healthy cash-flow balance and improved debt collection practices which resulted in a reduction of the high rate of arrears recorded in December 2008”, explained Gabriel Zbârcea, Managing Partner at Ţuca Zbârcea & Asociaţii.
The firm’s anti-crisis strategy consisted, among others, in the creation of a dedicated financial crisis response practice group (Crisis Knowledge Team), the setting-up of TZA Insolvenţă S.P.R.L. – a specialized division which handles the firm’s projects in this area, the strengthening of the busiest practice groups, as well as reshaping of the firm’s banking and finance practice group and the recruitment of Mihai Dudoiu.
Also, throughout 2009, the firm has successfully completed some high-profile mandates in the fields of energy, litigation and international arbitration, real estate and infrastructure. On the same note, the team of lawyers in Ţuca Zbârcea & Asociaţii has successfully completed financing projects and mergers and acquisition transactions worth more than 1.5 billion Euros.
“While the economic situation remains challenging, it is difficult to foresee an increase in revenues in 2010. To us, matching last year on total revenue would represent an outstanding performance”, pointed out Florentin Ţuca, Managing Partner at Ţuca Zbârcea & Asociaţii.
The firm’s plans for 2010 include the strengthening of the recently opened representative office in Madrid, the strengthening of their regional presence with a focus towards the office in Cluj-Napoca. Also, the firm will focus increasingly on potentially lucrative sources of work, including by expanding the “repertoire” of services offered, and last but not least, will consolidate the team of lawyers.
Ţuca Zbârcea & Asociaţii’s positive growth dynamic over the past years has seen it become the number 1 law firm in Romania in terms of financials.The firm has garnered a string of local, regional and international accolades, having been named the Most Innovative Continental European Law Firm in the Financial Times’ Innovative Lawyers Report 2009 and recognized as the Law Firm of the Year for the past four consecutive years.