Simmons & Simmons today (13 July) unveiled a solid revenue increase of 6% to £465m for the past financial year, combined with an 8% rise in profit to £185m.
Profit per equity partner (PEP) also rose, topping the one £1m mark for the first time.
Unsurprisingly, the firm was not able to maintain the striking growth rate it achieved in 2021, where revenue grew 12% to £437m and profit leapt up by 35% to £171m.
Speaking to Legal Business, managing partner Jeremy Hoyland (pictured) said that Simmons’ European practice was a major factor behind the growth: ‘We’ve invested pretty heavily since the Brexit referendum in our Continental European practice, anticipating the shift that clients are going to have to make in their business from the UK to the EU. We’ve really been building strength and depth on the continent.
‘I’m feeling good about the investments we’ve made, they’re starting to pay off. We have a really strong continental practice across the key EU 27 jurisdictions.’
The headline development in this regard has been the recently established Munich patent prosecution practice, with the firm hiring a group of attorneys from the Munich office of Isenbruck Bösl Hörschler in January.
Another key reason behind the success is the continued prosperity of the firm’s Solutions business, with external income up 25% and expansion into Asia and Ireland. The firm also credited its legal tech division Wavelength, and flexible resourcing platform Adaptive as the key drivers of growth in this regard.
Other factors underpinning the growth this year have been a sizeable internal promotions round, with 13 partners made up; the opening of a TMT-focused Silicon Valley office; and the relocation of the Dubai office. The firm has also increased its pay to reflect the increased cost of living.
Of the market going forward, Hoyland said: ‘I wouldn’t be surprised if we see an increase in litigation, maybe not this financial year, maybe more next year. There is usually a lag effect, and it probably depends to some extent on how the how the global economy shakes out, what does happen with Ukraine and whether that does have an impact on clients’ appetite to invest.’