CMS has reported a 5% uptick in global revenue from last year’s €1.862bn to €1.957bn in its most recent set of financial results, with PEP down 4% on last year’s estimated £771,000 to £741,559.
Despite continued financial growth, this year marks a further deceleration after revenue growth slowed from 18% in 2021-22 to 6% last year.
Speaking to Legal Business, Stephen Millar, managing partner at CMS UK (pictured), commented: ‘This year’s results are solid, placing us between the higher and lower ends of market performance. Given the various headwinds and a quieter transaction market that hasn’t rebounded as quickly as anticipated, we’re pleased with our achievements.’
The firm reported that 54 internal lawyers were promoted to partnership across CMS, including 10 in the UK. Furthermore, the firm made 24 lateral hires in the UK over the past 12 months. Changes to senior leadership saw the appointment of Charles Currier as the UK’s new senior partner in March. The UK outperformed the wider firm, with turnover up 7% to £734.7m from FY 2022-23’s £686m.
Internationally, the firm nominated new heads for five of its international expertise groups. Sam De Silva of CMS UK joined Aukje Haan of CMS Netherlands as cohead of commercial; Gaël Chuffart of CMS Belgium and Daniela Krömer of CMS Austria became coheads of employment; Sarah Hanson of CMS UK and Roland Wiring of CMS Germany became co-heads of life sciences & healthcare; Jacob Siebert of CMS Germany joined Jason Zemmel of CMS as UK as cohead of private equity; and Virginie Dor of CMS Belgium was named head of public procurement.
Disputes was the firm’s strongest practice area over the last year, accounting for 29.9% of total turnover, with corporate a close second at 29.6%. Finance was in third at 17.5%, with real estate at 13.5% and ‘other significant areas’ making up the remaining 9.5%.
Last year, by comparison, corporate accounted for 29% of the firm’s revenue, with 28% from disputes.
Notable expansions in 2023 included a cooperation agreement with the Brazilian law firm Focaccia, Amaral e Lamonica Advogados, which strengthened CMS’s capabilities in Latin America. The firm also opened a new office in Riyadh and incorporated the Swedish firm Wistrand into its network.
‘While the UK remains a strong market for us, our identity as a major international firm means that developing our global strategy is central to our goals. This involves expanding into new jurisdictions as well as deepening our presence in established regions like Central Eastern Europe. Looking into this next year, we see further growth opportunities in the Middle East and Asia,’ Millar said.
Looking ahead, Millar said: ‘I think the upcoming year will be about evolution not revolution. The narrative of being a leading relationship law firm fits very well with our geographically and practice-diverse business, so I expect the year to focus on refining what we’re already doing rather than revolutionising.’
He continued: ‘In the UK, we see a strengthening economy. This presents the biggest opportunity for us. We’ve been succeeding notwithstanding a challenging market, and we see a more favorable market on the horizon.’
Addleshaw Goddard (AG) has also announced a set of promising financial results, reporting a 12% increase in revenue growth from £443m last year to £495.6m, with profit up 14% from £184m to £210.5m.
This years’ PEP figure is £984,000, an increase of 8% on last year’s estimated £909,000.
The firm lists the Middle East as its fastest growing region, with a 28% spike in income growth in FY23-24, while UK income increased by 11%. The firm also attributes 24% of its overall income growth to its practice outside the UK and the Middle East. Ireland was also a standout, with a growth rate of more than 30% only two years after opening.
AG’s closing cash position has gone down by 5% from £146m last year to £139.1m.
The results showed double-digit growth across all nine of the firm’s core sectors, with financial services the highest-performing sector, contributing 30% of the firm’s overall income.
Total partner headcount was up 7% to 382, with 130 equity partners and 252 non-equity: an addition of 72 new partners, 52 lateral hires and 20 internally promoted.
Other areas of expansion included the opening of a new office in Berlin in January, along with the establishment of new offices in Madrid and Riyadh in May. The Madrid office welcomed 13 partners and their teams from KWM, while the Riyadh office marked CMS’s fourth location in the Middle East, joining existing offices in Dubai, Qatar, and Oman.
Some of the firm’s standout mandates from the last fiscal year include advising ASDA on its £2.3bn acquisition of EG Group’s UK and Ireland fuel, foodservice, grocery, and merchandise businesses; advising BT on the sale of London’s iconic BT Tower; and involvement in several high-profile public inquiries, including those related to Covid-19, the Post Office, infected blood, and Grenfell Tower.
‘These results show us continuing our positive trajectory with higher revenues, improved profitability and strong cash position’, said Andrew Johnston, elected AG’s managing partner last November for a term that started on 1 May, in a statement.
‘AG’s continued momentum and strong balance sheet places us well to invest further in key markets, practice areas and sectors globally. The diversified nature of our business, coupled with our international expansion and other strategic investments, particularly in innovation and technology, means we are better placed than ever to support and service clients wherever they are doing business.’
