BlackpeakCFO^™

Thornton & Hale LLP

Management Accounts · January 2026

Sample Report · Fictional company, demo data

PARTNER-CONFIDENTIAL

B&A

Thornton & Hale LLP

Leeds, England · SRA Regulated

Civil Litigation
Corporate M&A
Real Estate
Employment Law

Your Numbers, Explained · January 2026 · BlackpeakCFO

Thornton & Hale LLP
Management Accounts — January 2026

Civil Litigation · Corporate M&A · Real Estate · Employment Law

Leeds, England (Harrogate satellite office) · 6 Equity Partners · 32 Total Headcount · Est. 2011

Monthly Collections

£962,000

+£18K vs target ↑

Realisation Rate

87.4%

Target 85% ✓ On Target

Effective Rate

£342/hr

Blended all timekeepers

Headcount

32

6 Partners · 12 Assoc · 8 Para · 6 Staff

Civil Litigation Corporate M&A Real Estate Employment Law Leeds Est. 2011

Prepared by BlackpeakCFO · Monthly Management Accounts · England & Wales · This report is Partner-Confidential and prepared solely for the equity partners of Thornton & Hale LLP. · blackpeakcfo.com

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL TABLE OF CONTENTS & KEY HIGHLIGHTS January 2026 Management Accounts

Index Report Contents & Key Highlights Monthly Management Accounts · January 2026 · Thornton & Hale LLP · Leeds, England

Report Sections

P1
Cover Page
Firm overview, period summary and four headline KPIs
P2
Table of Contents & Key Highlights
Index and executive summary of January highlights
P3
Managing Partner Dashboard
8-KPI summary grid · billings vs collections trend (8 months)
P4
Billings by Practice Area
Fee income vs budget by department · practice area donut chart
P5
Utilisation & Billing Rate Analysis
Timekeeper productivity report · top 5 billers this month
P6
Income Statement (Profit & Loss)
Net fee income · contribution margin · EBIT · partner profit pool
P7
WIP & Accounts Receivable Ageing
WIP by practice area · AR ageing · DSO 32.4 days
P8
Client Account Trust Account Reconciliation
Client trust compliance · zero-variance reconciliation · England & Wales DRPC
P9
Cash Flow & Working Capital
Operating cash +£259,600 · LOC unused · net working capital £3.9M
P10
Headcount & Capacity Analysis
Utilisation by role · 776-hr capacity gap · £268K revenue opportunity
P11
Budget vs Actual & Q1 2026 Forecast
Variance analysis · Q1 projections · EBIT +12% vs budget
P12
Finance Priorities & Action Items
Immediate actions · 30-day plan · strategic initiatives · England & Wales matters

⭐ Key Highlights — January 2026

✓ Collections £18K Ahead of Target — January collections of £962,000 exceeded the £944,000 budget by £18,000 (1.9%). Corporate M&A billings were exceptionally strong following the Q4 2025 deal surge, with three M&A closings generating £308,400 in fee income against a £280,000 budget — a £28,400 favourable variance.

⚠ Associate Utilisation 78.4% vs 80% Target — Associate productivity is 1.6pp below the 80% target. Two new associates joining 10 February will add capacity to the litigation and M&A groups. The shortfall is partly attributable to the new 15 Jan hire’s onboarding period. Equity partner utilisation (81.1%) is near the 82% target.

✓ Client Account Trust Account Fully Compliant — Client trust account reconciled to £0 variance as at 31 January 2026. All £835,000 in client funds segregated at First National Bank of England & Wales. Interest remitted to England & Wales Access to Justice Foundation. No SRA Accounts Rules compliance issues. See Page 8 for full reconciliation.

⚠ Regulatory Fees Accrual Updated — Monthly accrual of £2,400 maintained for SRA, practising certificate and compensation fund fees, estimated at £28,400 for the year. The firm is an LLP, so there is no Corporation Tax at firm level; members pay Income Tax and National Insurance on their profit shares through Self Assessment. BlackpeakCFO to review members’ tax reserves by 31 March.

🚨 What This Report Caught That You’d Have Missed

(1) Two associates billing below 75% utilisation — at £350/hr standard rates, every 1% shortfall costs the firm £7,280/month in unbilled capacity. (2) AR ageing shows £84,000 over 90 days — the longer a debt is left, the harder it is to collect, and £56,000 of it is at risk of write-off. (3) Corporate group’s realisation rate dropped to 82% from 87% — discounting creep that erodes partner profit by £55K annualised if uncorrected.

Report Scope & Accounting Basis: Prepared on an accruals basis consistent with FRS 102. “Billings” = fees invoiced to clients at standard rates. “Collections” = cash received during the period. WIP represents accumulated unbilled time at standard rates. Client account reconciliation prepared under the SRA Accounts Rules. Partner draws shown as fixed monthly compensation; the Partner Profit Pool is residual EBIT after all firm expenses and the regulatory fees accrual.

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 2 of 12

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL MANAGING PARTNER DASHBOARD January 2026 Management Accounts

P3 Managing Partner Dashboard — January 2026 8 KPI Summary · Billings vs Collections Trend · Thornton & Hale LLP

Monthly Billings

£1,101,400

WIP created this month — all practice areas

↑ vs £1,060,000 budget

Monthly Collections

£962,000

Cash received from clients in January

↑ +£18K vs £944K target

Realisation Rate

87.4%

Collections / billings — target 85%

✓ On Target

Effective Billing Rate

£342/hr

Blended all timekeepers, all matters

Standard blended: £385/hr

Total Hours Billed

2,808 hrs

After non-billable adjustments

Total recorded: 3,644 hrs

Partner Utilisation

81.2%

Equity + non-equity partners

Near 82% target ✓

Associate Utilisation

78.4%

12 associates — target 80%

⚠ 1.6pp below target

WIP Outstanding

£2,847,800

Unbilled time at standard rates

Net collectible est. 90% = £2.56M

Verdicts: ✓ Collections Ahead ⚠ Associate Util Watch ✓ Client Account Compliant ✓ Realisation On Target ✓ EBIT +12% vs Budget Partner Profit Pool: £348,400 — £58,067 per equity partner

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 3 of 12

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL BILLINGS BY PRACTICE AREA January 2026 Management Accounts

P4 Fee Income by Practice Area — January 2026 vs Budget All four practice groups · Actual vs Budget vs YTD · Thornton & Hale LLP

Practice Area	Jan Billings	Jan Budget	Variance £	YTD Actual	YTD Budget	% of Total
Commercial Litigation	£440,600	£420,000	+£20,600	£440,600	£420,000	40.0%
Corporate / M&A	£308,400	£280,000	+£28,400	£308,400	£280,000	28.0%
Real Estate	£198,200	£210,000	−£11,800	£198,200	£210,000	18.0%
Employment Law	£154,200	£150,000	+£4,200	£154,200	£150,000	14.0%
TOTAL BILLINGS	£1,101,400	£1,060,000	+£41,400	£1,101,400	£1,060,000	100%
Variance %	—	—	+3.9%	—	—	—

Litigation

40.0%

+£20,600 fav

Corp M&A

28.0%

+£28,400 fav

Real Estate

18.0%

−£11,800 adv

Employment

14.0%

+£4,200 fav

Corporate/M&A +£28,400 above budget — Three M&A closings from the Q4 2025 transaction pipeline flowed through in January: Apex Capital acquisition (£142K fees), Westlake industrial sale (£96K), and NorthStar Holdings merger close (£70K). The M&A team has a strong Q1 2026 pipeline with two additional deal closings expected in February.

Real Estate −£11,800 adverse — Commercial property work is seasonally slower in January following the holiday period. The Harrogate office accounts for approximately 60% of real estate billings. Two new commercial lease matters were opened mid-January; billings expected to normalise to budget in February. No deal cancellations reported.

Billing Partner Responsibility

Commercial Litigation J. Thornton / S. Kim

Corporate / M&A A. Rodriguez / T. Chen

Real Estate M. Okafor / D. Walsh

Employment Law S. Kim / L. Martinez

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 4 of 12

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL UTILIZATION & BILLING RATE ANALYSIS January 2026 Management Accounts

P5 Timekeeper Productivity Report — January 2026 All billing timekeepers · hours recorded, billed, utilisation and effective rates

Timekeeper Category	Headcount	Target Hrs/Mo	Actual Hrs	Utilisation	Std Rate	Effective Rate	Realisation
Equity Partners	6	160 hrs	779 hrs	81.1%	£485/hr	£462/hr	95.3%
Non-Equity Partners	2	168 hrs	314 hrs	93.5%	£395/hr	£371/hr	93.9%
Associates (12)	12	168 hrs	1,579 hrs	78.4% ⚠	£285/hr	£252/hr	88.4%
Paralegals (8)	8	152 hrs	972 hrs	79.9%	£165/hr	£148/hr	89.7%

TOTAL BILLERS (28)	28	—	3,644 hrs	—	—	£302/hr	89.6%
Hours billed (after non-billable deductions)	—	—	2,808 hrs	77.1% of total	—	£392/hr blended	= £1,101,400 ✓

Non-billable time includes firm administration, business development, pro bono service, CPD/training and internal meetings. Non-billable hours of 836 represent 22.9% of total hours recorded — slightly above the <20% target. The excess is primarily BD time related to the M&A deal pipeline and two partner speaking engagements at the Leeds Law Society in January.

🏆 Top 5 Billers — January 2026

Timekeeper	Role	Practice Group	Hrs Billed	Effective Rate	Billings	vs Target
J. Thornton	Equity Partner	Commercial Litigation	184 hrs	£472/hr	£86,848	+15% vs target
S. Kim	Equity Partner	Litigation / Employment	168 hrs	£481/hr	£80,808	+5% vs target
A. Rodriguez	Equity Partner	Corporate / M&A	172 hrs	£458/hr	£78,776	+7.5% vs target
M. Thompson	Senior Associate	Commercial Litigation	196 hrs	£258/hr	£50,568	+16% vs target
R. Patel	Senior Associate	Corporate / M&A	188 hrs	£261/hr	£49,068	+12% vs target

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 5 of 12

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL INCOME STATEMENT (PROFIT & LOSS) January 2026 Management Accounts

P6 Profit & Loss Statement — January 2026 Jan 2026 vs Dec 2025 vs Budget · Variance analysis · Thornton & Hale LLP

Line Item	Jan 2026	Dec 2025	Jan Budget	Variance £	Var %	Commentary
INCOME
Fee Income (Gross Billings)	£1,101,400	£1,118,200	£1,060,000	+£41,400	+3.9%	M&A surge; litigation strong
Less: Client Disbursements	(£48,200)	(£52,400)	(£45,000)	−£3,200	—	Court filing fees, expert costs
NET FEE INCOME	£1,053,200	£1,065,800	£1,015,000	+£38,200	+3.8%

DIRECT COMPENSATION
Partner Draws (fixed — 6 equity)	£284,000	£284,000	£284,000	£0	—	£47,333/partner fixed monthly
Associate Salaries (12)	£212,400	£208,200	£212,400	£0	—	Inc. new 15 Jan hire pro-rata
Paralegal Salaries (8)	£84,800	£84,800	£84,800	£0	—	Stable — no changes
TOTAL DIRECT COMPENSATION	£581,200	£577,000	£581,200	£0	0%

CONTRIBUTION MARGIN	£472,000	£488,800	£433,800	+£38,200	+8.8%
Contribution Margin %	44.8%	45.9%	42.7%	+2.1pp	—	Above 42.7% target ✓

OVERHEAD EXPENSES
Office Staff Salaries (6)	£42,400	£42,400	£42,400	£0	—	Stable
Office Rent & Facilities	£28,400	£28,400	£28,400	£0	—	Leeds city centre + Harrogate
Professional Indemnity Insurance	£18,200	£18,200	£18,200	£0	—	Renewal review 30 Apr
Technology (practice mgmt)	£8,400	£8,400	£8,400	£0	—	Clio + document management
Marketing & Business Dev	£12,800	£14,200	£12,000	−£800	—	2 BD dinners hosted in Jan
Professional Development	£6,200	£4,800	£6,000	−£200	—	CPD & training
Miscellaneous Overhead	£4,800	£5,200	£5,200	+£400	—	Under budget this month
TOTAL OVERHEAD	£121,200	£121,600	£120,600	−£600	−0.5%

FIRM EBIT (before partner profit)	£350,800	£367,200	£313,200	+£37,600	+12.0%
EBIT Margin %	33.3%	34.4%	30.8%	+2.5pp	—	Strong leverage on overhead
Less: Regulatory Fees Accrual	(£2,400)	(£2,400)	(£2,400)	£0	—	Est. £28,400 annual — SRA & practising fees
NET INCOME (Partner Profit Pool)	£348,400	£364,800	£310,800	+£37,600	+12.1%
Per Equity Partner (6)	£58,067	£60,800	£51,800	+£6,267	+12.1%	Above £51,800 target ✓

Key Metrics: ✓ EBIT +12% vs Budget ✓ Contribution Margin 44.8% ✓ Overhead On Target ✓ Per Partner £58K ⚠ Dec £364.8K vs Jan £348.4K (seasonal)

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 6 of 12

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL WIP & ACCOUNTS RECEIVABLE AGING January 2026 Management Accounts

P7 Work-in-Progress & Receivables — 31 January 2026 WIP ageing by practice area · AR ageing by client type · DSO and write-off metrics

Work-in-Progress Ageing (Unbilled Time)

Matter Type	0–30 Days	31–60 Days	61–90 Days	90+ Days	Total WIP
Commercial Litigation	£428,400	£312,200	£148,400	£82,400	£971,400
Corporate / M&A	£342,800	£184,600	£42,200	£18,400	£588,000
Real Estate	£218,200	£142,400	£68,400	£28,400	£457,400
Employment Law	£168,400	£84,200	£48,600	£82,200 ⚠	£383,400
Client Disbursements	£248,400	£142,800	£56,400	£0	£447,600
TOTAL WIP	£1,406,200	£866,200	£364,000	£211,400	£2,847,800
% of Total WIP	49.4%	30.4%	12.8%	7.4%	100%

Employment Law 90+ Day WIP (£82,200 / 21.4% of dept) — Predominantly contingency fee matters. Two plaintiff employment discrimination cases and one wage/hour collective action are in late-stage settlement negotiations. Conversion to billings expected upon settlement — head of department to confirm timelines by 14 Feb. No write-off risk anticipated on these matters.

Accounts Receivable Ageing (Billed & Unpaid)

Client Category	Current	31–60	61–90	90+	Total AR
Active Litigation	£284,200	£142,400	£48,200	£18,400	£493,200
Corporate Clients	£198,400	£84,200	£22,400	£0	£305,000
Real Estate	£142,800	£68,400	£18,400	£8,200	£237,800
TOTAL AR	£625,400	£295,000	£89,000	£26,600	£1,036,000
% of Total AR	60.4%	28.5%	8.6%	2.6%	100%

Days Sales Outstanding

32.4 days

Target <35 days ✓ On target

Write-off Rate (12mo)

2.1%

Target <3% ✓ Well within range

WIP Net Collectible (90%)

£2,562,000

90% of £2,847,800 WIP

Total Billings Pipeline

£3,883,800

WIP £2.85M + AR £1.04M

AR Quality Strong — 60.4% of AR is current (0–30 days). Corporate clients have £0 in 90+ day balances reflecting excellent payment discipline. The £26,600 in 90+ day AR is primarily from two litigation clients under fee dispute — both matters are being managed; no write-off provisioned at this stage.

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 7 of 12

Client Account COMPLIANCE | SRA ACCOUNTS RULES 2019 CLIENT TRUST ACCOUNT RECONCILIATION PARTNER-CONFIDENTIAL

Client Account Client Trust Account Reconciliation — 31 January 2026 England & Wales DRPC SRA Accounts Rules Monthly Reconciliation · First National Bank of England & Wales · Account ending ···4829

✓ Trust Balance Reconciliation

Bank Statement Balance	£847,400
Less: Outstanding Checks	(£12,400)
Adjusted Bank Balance	£835,000
Firm Book Balance	£835,000
RECONCILING DIFFERENCE	£0 ✓

✓ FULLY RECONCILED — ZERO VARIANCE

Client Account Compliance Checklist

✅

Segregation of Funds — All client funds held in dedicated client account at First National Bank of England & Wales. Zero commingling with firm operating account.

✅

Monthly Reconciliation — Trust account reconciled monthly. January 2026 reconciliation completed 31 January — zero variance confirmed by BlackpeakCFO.

✅

Client Account Interest Remittance — Interest earned in January (£142) remitted to England & Wales Access to Justice Foundation per England & Wales Lawyer’s Trust Account Oversight Program (Client Account) requirements.

✅

Client Ledger Balance — Individual client ledger balances verified against bank balance. All balances positive; no client’s funds inadvertently used for another matter.

⚠️

Rodriguez Settlement Disbursement — Settlement funds of £284,200 received 28 Dec. Written disbursement instructions received 29 Jan. Disbursement scheduled 3 February 2026 per client direction.

Client Trust Ledger Summary — 31 January 2026

Client / Matter	Balance Held	Purpose	Date Received	Status
Rodriguez v. Harris County	£284,200	Settlement funds pending disbursement	28 Dec 2025	Disbursing 3 Feb
Apex Capital M&A Completion Monies	£248,400	Deal monies held pending completion conditions	12 Jan 2026	Closing Q1
Westlake Properties Ltd	£142,800	Property completion deposit — held pending completion	8 Jan 2026	Close 28 Feb
Smith Employment Matter	£84,600	Retainer — contingency matter, held as advance	14 Nov 2025	Active
Misc Retainers (8 clients)	£75,000	Various retainers — multiple active matters	Various	Active
TOTAL CLIENT FUNDS HELD	£835,000	= Book Balance ✓

📋 England & Wales Client Account Regulatory Notes

Client Account: Client money is held in a separate client bank account under the SRA Accounts Rules, and interest on client money is accounted for in line with the firm’s published interest policy. · Reconciliation: The SRA Accounts Rules require a client account reconciliation at least every five weeks; this firm reconciles monthly. The reconciliation (bank statement, adjusted balance, client ledger) is complete, signed off by the COFA and shows zero variance as at 31 January 2026. · No Breaches Identified: No mixing of client and office money, no client ledger debit balances, no payments made without client authorisation.

Prepared by BlackpeakCFO · Monthly Management Accounts · England & Wales · Client Account Compliance MonitoringPage 8 of 12

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL CASH FLOW & WORKING CAPITAL January 2026 Management Accounts

P9 Cash Flow Summary — January 2026 Operating · Investing · Financing · Working Capital as at 31 January 2026

Cash Flow Statement — January 2026

Item	Amount	Notes
OPENING POSITION
Opening Cash — 1 January 2026	£284,200	Firm operating account

OPERATING ACTIVITIES
Collections from Clients	+£962,000	Cash received 1 Jan–31
Partner Draws Paid	(£284,000)	6 equity partners × £47,333
Associate & Paralegal Salaries	(£297,200)	Gross salaries incl. employer NI ~£42K
Overhead Expenses Paid	(£121,200)	Rent, insurance, tech, marketing
NET OPERATING CASH FLOW	+£259,600	Strong operating cash generation

INVESTING ACTIVITIES
Technology Equipment	(£8,400)	Workstation upgrades — litigation team
NET INVESTING CASH FLOW	(£8,400)

FINANCING ACTIVITIES
Operating Line of Credit (net)	£0	£750K facility — £0 drawn in January
NET FINANCING CASH FLOW	£0

NET CHANGE IN CASH	+£251,200	Strong January cash generation
CLOSING CASH — 31 January 2026	£535,400	Operating account only (excl. Client Account)

Operating Line of Credit: £750,000 revolving credit facility with the firm’s bank. Rate: Bank of England base rate plus a fixed margin. £0 drawn as at 31 January 2026. The line provides liquidity for the year-end partner distribution peak in December. No covenant issues. Annual review due September 2026. · Non-equity partner compensation of £45,600/month paid through payroll (included in associate/staff payroll line). · Client Account trust account (£835,000) held separately and is NOT firm operating cash.

Working Capital — 31 January 2026

Component	Amount
CURRENT ASSETS
Cash & Cash Equivalents	£535,400
Accounts Receivable (billed)	£1,036,000
WIP — Net Collectible (90%)	£2,562,000
TOTAL CURRENT ASSETS	£4,133,400

CURRENT LIABILITIES
Accounts Payable	(£84,200)
Accrued Liabilities	(£128,400)
TOTAL CURRENT LIABILITIES	(£212,600)

NET WORKING CAPITAL	£3,920,800

Operating Cash

£535,400

2.1 months overhead cover

Net Op Cash Flow

+£259,600

Strong January generation

LOC Availability

£750,000

£0 drawn — full facility available

Net Working Capital

£3.92M

19.4× current liabilities

Excellent liquidity position — Closing cash of £535,400 represents 2.1 months of overhead cover. The firm’s £750,000 operating line is fully undrawn. Net working capital of £3.92M is driven primarily by the strong WIP and AR pipeline. Accrued liabilities of £128,400 include the regulatory fees accrual (£28,800 YTD) and employee benefits payable.

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 9 of 12

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL HEADCOUNT & CAPACITY ANALYSIS January 2026 Management Accounts

P10 Headcount & Capacity Report — January 2026 Staffing levels · monthly compensation · capacity utilisation · revenue opportunity

Headcount & Monthly Cost Summary

Role	HC Jan	HC Dec	Change	Avg Monthly Cost	Total Cost
Equity Partners	6	6	—	£47,333 draw	£284,000
Non-Equity Partners	2	2	—	£22,800	£45,600
Associates	12	11	+1	£17,700	£212,400
Paralegals	8	8	—	£10,600	£84,800
Support Staff	6	6	—	£7,067	£42,400
TOTAL FIRM (34)	34	33	+1	—	£669,200

Capacity Analysis — January 2026

Total Available Hours (28 billers × avg 162 target)

4,536 hrs

Actual Hours Billed

2,808 hrs

Overall Utilisation (billed/available)

61.9%

Target Billed Hrs (80% utilisation)

3,629 hrs

Capacity Gap (hours unbilled potential)

776 hrs

Revenue Opportunity (at £342 eff rate)

£265,392

New Associate Hired 15 January — One new litigation associate joined the Leeds office mid-month, contributing partial-month hours. Two additional associates are scheduled to start 10 February (one litigation, one M&A), which will add approximately 300+ billable hours per month once fully ramped. The M&A associate hire is targeted at the growing Corporate/M&A deal pipeline.

Utilisation: Target vs Actual by Role Group

Equity Partners 81.1% vs 82% target ≈ On Target

Non-Equity Partners 93.5% vs 84% target ↑ Exceeds

Associates 78.4% vs 80% target ⚠ Below

Paralegals 79.9% vs 80% target ≈ Near Target

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 10 of 12

THORNTON & HALE LLP | PARTNER-CONFIDENTIAL BUDGET VS ACTUAL & Q1 2026 FORECAST January 2026 Management Accounts

P11 Budget Variance Analysis & Q1 2026 Forecast January actuals vs annual plan · Q1 projections · key variance commentary

Key Budget Variances — January 2026

P&L Category	Actual	Budget	Variance £	Var %	Driver
INCOME
Gross Billings	£1,101,400	£1,060,000	+£41,400	+3.9%	M&A deal surge
Client Disbursements	(£48,200)	(£45,000)	−£3,200	—	Litigation experts
Net Fee Income	£1,053,200	£1,015,000	+£38,200	+3.8%
COMPENSATION
Partner Draws	£284,000	£284,000	£0	0%	Fixed — on budget
Associate Salaries	£212,400	£212,400	£0	0%	New hire on plan
Paralegal Salaries	£84,800	£84,800	£0	0%	Stable headcount
Total Direct Compensation	£581,200	£581,200	£0	0%
OVERHEAD
Office Staff & Facilities	£70,800	£70,800	£0	0%	On budget
Insurance & Technology	£26,600	£26,600	£0	0%	On budget
Marketing & Prof Dev	£19,000	£18,000	−£1,000	−5.6%	2 BD dinners, CLE
Miscellaneous	£4,800	£5,200	+£400	+7.7%	Under budget
Total Overhead	£121,200	£120,600	−£600	−0.5%

FIRM EBIT	£350,800	£313,200	+£37,600	+12.0%	Strong revenue leverage
NET INCOME (Profit Pool)	£348,400	£310,800	+£37,600	+12.1%	£6,267 ahead per partner

Revenue over by 3.9% — Corporate M&A driven. All direct compensation lines are exactly on budget, demonstrating strong cost discipline. Marketing is £800 over due to two business development dinners that generated positive pipeline — ROI justified. The £37,600 EBIT beat (+12%) is driven entirely by revenue outperformance with zero overhead overruns of material consequence.

Q1 2026 Forecast (Jan Actual + Feb–Mar Forecast)

Month	Billings	Collections	EBIT	EBIT Margin
Jan 2026 (actual)	£1,101,400	£962,000	£350,800	33.3%
Feb 2026 (forecast)	£1,082,000	£1,024,000	£338,600	31.3%
Mar 2026 (forecast)	£1,124,000	£1,086,000	£362,400	32.2%
Q1 2026 TOTAL	£3,307,400	£3,072,000	£1,051,800	31.8%
Q1 Budget	£3,180,000	£2,832,000	£939,600	29.5%
Q1 Variance vs Budget	+£127,400	+£240,000	+£112,200	+2.3pp

Q1 Billings Forecast

£3,307,400

+£127K vs Q1 budget

Q1 EBIT Forecast

£1,051,800

+£112K vs Q1 budget

Forecast Assumptions: Feb billings assume 2 new M&A closings (£180K combined) + normal litigation run-rate. Mar billings reflect full capacity with 2 new associates onboarded 10 Feb. Collections forecast assumes 31-day DSO cycle. Feb collections elevated as Jan billings + WIP convert to cash. EBIT margins reflect fixed cost base with revenue flowing through. Real estate line modelled to recover to budget from Feb.

Prepared by BlackpeakCFO · Monthly Management Accounts · England & WalesPage 11 of 12

THORNTON & HALE LLP | FINANCE PRIORITIES FINANCE PRIORITIES & ACTION ITEMS February 2026

P12 Finance Priorities & 90-Day Action Plan Prepared by BlackpeakCFO · Action period: February 2026

⚡ Immediate — This Week

🔴 HIGH — Trust Disbursement

Distribute Rodriguez v. Harris County settlement funds (£284,200) per signed client disbursement instructions received 29 Jan. Process via client account — zero tolerance for delay. Due: 3 Feb 2026

Owner: Cashier + COFA

🔴 HIGH — M&A Matter Invoicing

Issue final invoices for three completed M&A matters currently held in WIP (~£142,000 combined). Apex Capital, Westlake acquisition, NorthStar Holdings. Billing coordinator to prepare and send by 7 Feb. Due: 7 Feb 2026

Owner: Billing Coordinator + A. Rodriguez

🟡 MED — Employment 90+ WIP Review

Employment Law 90+ day WIP (£82,200) — predominantly conditional fee (no win, no fee) matters. Head of department to review all three matters and confirm settlement timelines. Assess whether any provision for doubtful WIP is warranted. Due: 14 Feb 2026

Owner: Head of Employment + FD

📅 30-Day Actions — February

🟡 MED — New Associate Onboarding

Two new associates start 10 February. HR to coordinate billing system setup, matter assignments, and rate configuration in Clio. Practice managers to assign matters within first 48 hours to ensure billable hour ramp. Due: 10 Feb 2026

Owner: HR + Practice Group Managers

🟡 MED — Members’ Tax Reserve Review

Review the tax reserve retained from each member’s drawings against estimated 2025/26 profit shares, ahead of the 31 July 2026 payment on account. Agree any top-up with the Managing Partner. Due: 31 Mar 2026

Owner: FD + Managing Partner

🟡 MED — Professional Indemnity Renewal

Professional indemnity insurance expires 30 April 2026. Obtain minimum 3 competitive quotes by 15 March. Quotes to be obtained through the firm’s insurance broker. Ensure coverage adequate for M&A deal volume increase. Due: 15 Mar 2026

Owner: FD + Managing Partner

📊 Strategic Initiatives — Q1–Q2

📈 Real Estate Practice Recovery

Real estate practice is £11,800 below January budget. Review partner capacity and new client pipeline with M. Okafor and D. Walsh. Commercial property work seasonally slow — model Q2 recovery assuming Westlake deal close and two new development clients.

⚖️ M&A Lateral Partner Evaluation

Capitalise on Q4/Q1 M&A deal flow momentum. Evaluate lateral hire of experienced M&A partner from the Leeds market — one referral already received from A. Rodriguez. Partner compensation model and conflicts check to be reviewed by Q2 2026.

🤖 AI Legal Research Tools

Evaluate AI-assisted legal research tools (Harvey, Casetext CoCounsel) to reduce associate non-billable research time by estimated 15%. Pilot with 3 associates in March. Potential to recover 180+ billable hours/month at £252/hr effective rate = +£45,360 revenue opportunity.

★ England & Wales Regulatory Reminders

✓ LLP Tax Position — Tax transparent; no Corporation Tax at firm level.

✓ Client Account / SRA Accounts Rules — Reconciled 31 Jan — zero variance. (See P8)

✓ Members’ Tax Reserves — Retained for 31 January and 31 July payments.

⚠ Professional Indemnity Renewal — Due 30 April — begin quotes by 15 Mar.

⚠ Harrogate Expansion — Evaluate a 3-day presence for property clients in North Yorkshire.

Prepared by BlackpeakCFO · Monthly Management Accounts · England & Wales — Next report: February 2026 Management Accounts — due 5 March 2026. · Q1 2026 partner equity review scheduled 31 March. · blackpeakcfo.com

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