Eversheds Sutherland has posted a modest 3% increase in revenue for its business outside of the US, with profits remaining flat amid what the firm described as ‘challenging economic conditions’.
Revenues for Eversheds Sutherland (International) – which reports separately to the firm’s US arm – rose from £730.9m to £749.4m, with profit per equity partner (PEP) inching up by less than 1% from £1.29m to £1.3m, and net profit flatlining at £175.1m.
In a statement, chief executive Lee Ranson (pictured), said: ‘Against the backdrop of more challenging economic conditions in many of our international markets, we have delivered a solid set of results.’
The firm’s results follow more impressive performances from a string of UK rivals, including Herbert Smith Freehills, Simmons & Simmons and Macfarlanes, all of which reported double-digit revenue growth.
The results come after the firm saw PEP rise by 4% last year, with the relatively slow growth attributed to strategic investments. This year, Ranson underscored that ongoing commitment, stating: ‘We have continued to invest in people, infrastructure, and technology.’
The firm has bolstered its team with 16 new lateral partners during the year. In London, notable hires include restructuring partner Barney Smedley from DLA Piper; financial services regulatory expert Tim Fosh, who joined from Slaughter and May, where he was a special counsel ; and energy/corporate partner Kiran Arora from Bryan Cave Leighton Paisner. Elsewhere, Walid Salib joined the firm’s Riyadh office from Freshfields to head up the firm’s M&A practice in Saudi Arabia.
Departures, meanwhile, included finance partner Chris Hastings, who moved to Squire Patton Boggs in May, and Giles Salmond, the former UK head of indirect taxes and tax dispute resolution, who joined Stewarts in November.
A particularly significant development during the year was the firm’s strategic cooperation agreement with KWM (China) which will now see KWM exclusively refer clients needing legal advice in the UK, Europe, the Middle East, Africa, and South America to Eversheds. In return, Eversheds will direct all international clients seeking PRC legal counsel to KWM. The firm has also now taken on a large chunk of KWM’s former EMEA operation, including around 25 lawyers across London, Frankfurt and Dubai, including 10 partners.
In another strategic shift, the firm decided to close its Berlin office in May as part of a broader reassessment of its German operations. It now maintains a streamlined presence with offices in Düsseldorf, Frankfurt, Hamburg, and Munich.
Deal highlights included advising Nisbets on its £339m sale to Bunzl and assisting RWE with its £963m acquisition of the 4.2 GW Norfolk Offshore Wind Zone from Vattenfall. The firm also supported Morrisons in its £2.5bn strategic partnership with Motor Fuel Group, which involves acquiring petrol forecourts and electric vehicle charging infrastructure.
Looking ahead, Ranson expressed a positive outlook: ‘With signs of improving activity in the transactional markets, I believe that we are well placed to continue to drive our global strategy forward.’