As financial results season continues apace, Linklaters today (9 August) joined Magic Circle peers in showing its hand, posting a 6.5% uptick in revenue to £1.783bn.
Pre-tax profit also saw a comparable increase of 7% to £871.7m. That translated to a 5.4% rise in profit per equity partner (PEP), which reached £1.87m, and a 4.5% rise in profit per all partners, which now stands at £1.78m.
The results are the first set overseen by managing partner Paul Lewis after the finance head was elected in July 2021 to take the helm from illustrious leader Gideon Moore.
The turnover numbers will be seen as a fillip for the firm after muted 2% growth to £1.67bn for the 2020/21 financial year. However, last year’s double-digit profit boost could not be maintained, with the latest pre-tax profit figure a more muted showing than the 12% jump last year.
Lewis said: ‘We are pleased to report a strong set of financial results, largely driven by increased revenues from robust markets and sustained deal activity over the past financial year.
‘Our strategy is built on the premise that we will deliver profitable growth by excelling for clients. We are able to achieve this due to the quality, hard work and client-centric approach of our people.
‘In a post-pandemic world with growing political and economic uncertainty, our clients require complex legal solutions. The investments we have made over the year have ensured that we are able to provide the right combination of global coverage and high-quality cross practice expertise. To excel for our clients we need to be nimble, bold and decisive in our approach, which we will continue to be as we look ahead to the next financial year.’
When compared to the rest of the Magic Circle, the results make for interesting reading. Clifford Chance and A&O both recorded larger revenue increases of 8% and 10% respectively, in addition to higher profit rises of 9%. The pair also had higher absolute revenues, with both edging closer to the £2bn mark. For its part, Freshfields grew revenue 10% to £1.7bn.
Linklaters also came up slightly short when it comes to PEP. Freshfields led the pack, with a PEP increase of 8% to £2.07m from £1.91m last year. CC also passed £2m for the first time after a 10% increase, while A&O, though only managing a 3% increase, hit £1.95m.
