Legal Business

Pinsents and TLT post revenue growth as results season continues

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Financial results Pinsent MasonsTLT

Pinsent Masons has reported a 7.2% increase in turnover to almost £650m, marking another successful year of revenue growth for the international firm.

Revenue hit £649.6m, up from £605.9m last year, although growth was slower than last year, when the firm posted a 14% hike. Meanwhile, profit per equity partner (PEP) dipped very slightly to £793,000, down by less than 1% from £797,000.

Speaking with Legal Business about this year’s results, managing partner Laura Cameron (pictured) said: ‘Given the exceptional and record growth we achieved last year, maintaining a strong growth rate this year is a significant accomplishment, and we are very pleased with it.’

When asked about the decline in the rate of PEP and revenue growth, Cameron noted: ‘Considering the economic outlook in the jurisdictions where we operate, I’m satisfied with the results and can’t identify any factors that have hindered our growth rate.’

She continued: ‘This year, our major focus has been on investing in the business and advancing to the next stage of our development.’

In terms of the firm’s highest-performing practice areas, Cameron said that the contentious side of the business had had a particularly strong year. The firm’s global sector groups accounted for approximately 85% of overall revenue, with the breakdown as follows: global financial services (22%), infrastructure (14%), real estate (10%), technology, science and industry (21%), and energy (18%).

Cameron highlighted Australia and Johannesburg as key growth areas. ‘Australia has seen significant growth, particularly in energy and infrastructure, while our Johannesburg expansion has bolstered our employment, litigation and overall corporate capabilities,’ she said.

On the firm’s February Abu Dhabi office opening and its enhanced focus on the Middle East, Cameron remarked: ‘Our clients are enthusiastic about our new Abu Dhabi office. We are committed to exploring additional opportunities in the region, driven by client demand.’

Regarding the firm’s UK operations, she added: ‘The UK has shown exceptional performance, with strong collaboration between our London and regional offices. We’re very pleased with the results.’

The firm increased overall headcount by 7% during the year, with a record 41 lateral hires – 17 in EMEA, 15 in the UK, and nine in APAC – as well as 22 partner promotions. Other notable hires included chief technology officer Tracy McDermott, who joined in January from retirement property development business McCarthy Stone, and chief people officer Hannah Kozlova Lindsay, who was hired in April from Bryan Cave Leighton Paisner.

Cameron noted: ‘It’s crucial for us to take a more strategic approach to our employees’ working lives. With evolving work preferences and the need for innovation, recruiting Hannah was a top priority to advance our people strategy.’

She added: ‘AI and technology will be major drivers this year. We’ve established an AI steering committee and invested heavily in this area. I’m excited to see these developments unfold.’

As Cameron wraps up her first full financial year as managing partner, she outlined her ambitions and strategy: ‘Our sector-led approach, which has been successful for several years, will continue to be a key focus. We are committed to reinforcing and advancing this strategy. Integrating sectors, skillsets, and geographies is vital for effective collaboration in our clients’ best interests. The increase in cross-border mandates over the past 12 months is exactly what we aim to achieve, and I’m delighted with this progress.’

Elsewhere, Legal Business Awards Law Firm of the Year TLT has posted annualised results showing revenue up 12% to £174m and PEP up nearly 9% to £655,000, with profit up by over 11% to £28m. The performance marks a notable improvement on last year, when profit increased 9% but PEP plummeted 27% from £826,000 to £600,000.

‘We have reported another year of record revenue’, said managing partner John Wood in a statement. ‘These outstanding results can be attributed, in no small part, to our dedication to upholding a positive culture where our people feel valued, recognised and rewarded, combined with a focus on providing exceptional legal services to our clients.’

The firm made 13 lateral hires over the last year and opened in Birmingham, bringing its total number of offices to seven.

TLT reported annualized results for the 11-month period to 31 March 2024 due to the HMRC basis period reforms that also affected firms including Macfarlanes, Stevens & Bolton, and Fieldfisher.

anna.huntley@legalease.co.uk

alex.ryan@legalease.co.uk

Legal Business

Energy perspectives: Maria Connolly

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Profile TLT

What made you decide to become a lawyer and, once you’d made that decision, why energy?

I chose to do law at university as I felt it would be a good base for a future career choice, whether that was law or otherwise. Even the prospect of doing a degree was pretty daunting at first, as the first in a generation to do so. However, I genuinely loved it, particularly all things land law, and it was therefore a natural career choice for me to secure a training contract – which was with TLT! 

Legal Business

Financials 2022/23: Revenue up 9% at TLT but PEP dives 27%

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Financial results 2022/23 TLT

TLT has reported a 9% rise in revenue to £157m from £144m last year. This follows a standout year in 2021/2022, which saw turnover rocket by 30%.

However, the firm has seen profit per equity partner take a dramatic dip, falling 27% to £600,000 from last year’s £826,000, while equity partner headcount has increased marginally from 39 to 42.

Commenting on the reasons for the fall in PEP, managing partner John Wood (pictured)  said: ‘We had an exceptionally high year last year, due to a unique set of circumstances. Combined with this we have been making significant investments in our people and our sustainability initiatives, and there are more general inflationary pressures on top of that.’

Its sustainable initiatives include a recent office move to Cadworks, Glasgow’s first net-zero office, and an upcoming move to sustainable office block Eden in Manchester.

Wood was sanguine about the fall in PEP, adding: ‘That’s fine and it’s what we expected to happen. Would we pause on doing any of the things we are doing? Not at all, I don’t think there’s time to pause, particularly in relation to sustainability and technology.’

The firm is now in the third year of its four-year roadmap, having already surpassed its £140m target set for 2025.  Discussing the  2025 strategy, Wood said: ‘It’s faring really well. We set the strategy pre-pandemic and started it during the pandemic. There was a bit of a lull initially but since then we have been working really hard. The financial metrics are a sum of our success rather than the success itself. We are focusing on the growth of the business, and the numbers of our people. One of the big changes we have made has been around our sustainable premises. We will continue with more of the same as we push towards 2025, and we will start refining the strategy and thinking about our strategy for 2030 rather than 2025.’

Asked about the firm’s highest-performing practice areas Wood responded: ‘Across the board there has not been one particular area that is motoring ahead. In such a strange economic time our M&A practice is still doing really well, and our financial services practices are doing really well. We are strong across the board. Clean energy is doing particularly well, which makes up about a third of our corporate work.’

Looking forward, Wood said: ‘It is really difficult to predict. You can never be quite sure where the economic circumstances will go. However, clean energy will remain a key growth area. We have elections coming up and whatever colour of government we get, they are not going to pull back on investing in clean energy.’

In terms of recruitment next year, Wood commented: ‘We will continue to grow at pace. Our strategy around how you do that is about considering who we are as a firm. We remain fully flexible with the introduction of TLT World. We have found that is considerably attractive to joiners. You don’t make directives to get people back into the office, you create offices that are attractive places to be in.’

Holly.McKechnie@legalease.co.uk

Legal Business

‘People are at the core’: ESG-focused Butterworth named TLT senior partner

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Leadership TLT

TLT has elected a new senior partner, with head of pensions Sasha Butterworth set to assume the role at the beginning of 2023.

Taking over from Andrew Glynn, who has vacated the position after seven years, Butterworth will assume a range of new duties within the firm. These include chairing both the renumeration and promotions committees.

Speaking to Legal Business, Butterworth outlined her priorities going forward: ‘People are at the core of everything we do. One of our initiatives is TLT World, which means that people can work where they want and how they want, as longs as they are meeting client needs. We have some people in the office all the time, some who work completely from home, and some who do a mixture of both. We are completely committed to that model going forward, and I am just looking to continue the great work done by my predecessor Andrew Glynn.

‘We have also started to integrate the new routes to solicitor qualification. We have had our first cohort of legal apprenticeship and graduate legal apprenticeship candidates begin their programmes; my secretary is one of them. I’m sad to lose her, but it shows how great she is! The legal solicitor apprenticeship is now open to external candidates, and the graduate solicitor apprenticeship is only open to internal candidates for the moment.’

Another of Butterworth’s duties will be leading TLT’s responsible business agenda. Earlier this year, the firm had its commitment to reach net zero by 2040, verified by the Science Based Targets initiative. On the subject, she added: ‘Responsible business is another key thing for us. We recently received ISO 14001 certification, which is basically the gold standard for sustainable business. We are also committed to reaching net zero by 2040, which is a really ambitious target.’

In addition to her senior partner responsibilities, Butterworth will continue to act as head of pensions and maintain a practice that includes advising on the pension aspects of outsourcing from the public sector and reducing scheme liabilities with medically underwritten buy-ins.

‘I’ll be focusing on key pensions clients,’ she confirmed. ‘I won’t have the complete caseload I have now, but I will be doing around 50% alongside my new duties as senior partner.’

Charles.avery@legalease.co.uk

Legal Business

National champions: Surging revenues at Shoosmiths and TLT yield record results

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Financial Results 2021/22 ShoosmithsTLT

Following on from their impressive performances last year, top 50 national players Shoosmiths and TLT have both unveiled strong 2021/22 financial results, characterised by pacey revenue increases.

At Shoosmiths, revenue jumped 8% from £167.9m to £181.8m, while net profit grew a healthy 9% from £55.4m to £60.7m. Profit per equity partner (PEP) was up by a less eye-catching 3%, from £658,000 to £675,000, however last year’s robust 41% jump in PEP is fresh in the memory.

Making the PEP result even more palatable was the firm’s significant investment in its people – Shoosmiths brought forward its annual pay review by two months, made a discretionary ‘thank you’ bonus payment equal to 3% of salary to all staff in May, and has announced an additional £1,000 payment for all employees in September to ease the cost-of-living burden.

During the year, Shoosmiths also opened its first ever international office in Brussels, to meet growing client demand for EU competition, regulatory and trade law advice.

Chief executive David Jackson told Legal Business: ‘It’s another really strong year. We’re really pleased with the sustained profit growth over the last two years, particularly considering that everyone is facing inflation fears and with the backdrop of the war in Ukraine. It’s testament to our amazing people.’

In terms of practice areas, Jackson reported the firm’s real estate team had a ‘stonking year’, and that Shoosmiths’ corporate practice also performed well after recent heavy investment. Moreover, Jackson is upbeat when it comes to future transactional activity: ‘Because we operate in the premium mid-market, deal activity is still relatively strong as we speak. Maybe the mega deals have started to slow down for the Magic Circle, but our market remains robust.’

Meanwhile, TLT has boosted its turnover by a startling 30% from £110m to £144m, exceeding its £140m revenue target set for 2025 three years early.

Managing partner John Wood attributed the result to a combination of TLT’s national firm status and its attractiveness to talented recruits. He told Legal Business: ‘Part of the revenue increase is down to something that’s happened over the last three years, with work going from the larger City firms to the bigger national firms. Clients have said: “Why am I using a big City firm when I could be using a national firm? Why am I paying the uplift?”

‘The other element is flexible working – it’s really worked for us. It works for our clients and it works for our colleagues. It also works well for prospective candidates – the first question they ask is: “What’s your approach to flexible working?”’

Emphasising the recruitment drive, TLT added over 400 new joiners throughout the year, including five partner-level hires.

Wood reported growth across all practice areas, but highlighted corporate as ‘very strong’ and described TLT’s clean energy team as ‘absolutely phenomenal’. Despite the cause for cheer, he remains vigilant for the year ahead: ‘This year was a leap forward for us. To replicate that next year will be challenging – I’m not sure how it’s going to play out in a high-inflation economy. Maybe the banking services team will do well!’

Tom.baker@legalease.co.uk

Legal Business

Financials 2020/21: ‘Fortunate’ Macfarlanes adds 10% to top line as 26-50 LB100 firms post mixed results

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Financial results 2020/21 MacfarlanesTLTWatson Farley and Williams

Firms ranked 26-50 in the Legal Business 100 – Macfarlanes, TLT and Watson Farley & Williams – have posted a mixed bag of financials for 2020/21.

Macfarlanes has enjoyed its eleventh consecutive year of revenue growth amid a double-digit profit uptick and profit per equity partner figures that again bely fears of pandemic reversals. The robust 10% turnover increase to £260.96m builds on last year’s 9.5% rise to £237.65m, while PEP increased 9% to £2.09m, continuing last year’s solid 10% boost to £1.91m.

The results announced today (27 July) also point to a 12% increase in operating profit for the 2020/21 financial year, only a slight dip on the increase of 14% to £126m last year. The firm said it did not reduce costs over the course of the year, in fact overall costs increased, so the results reflected growth in the practice.

Senior partner Sebastian Prichard Jones (pictured) told Legal Business: ‘The last financial year was a good year for the firm despite the challenges that were clearly evident. We were fortunate that activity levels remained strong across our three areas of business – transactional, disputes and advisory work. Thank you as always to the firm’s clients and to our dedicated people for achieving what turned out to be a good result.’

Earlier in July, Macfarlanes announced it would be retaining 22 of the 25 trainees qualifying in September, giving the firm an 88% autumn retention rate.

Jat Bains, graduate recruitment partner said at the time: ‘This has been an uncertain period for many but we have continued to invest in our trainees, knowing that an investment in our trainees is an investment in the firm’s future.’

The firm also said it was increasing base salaries for both newly qualified solicitors and trainees. First year trainees will take home £48,000, rising to £52,500 for second year trainees, while newly qualified lawyers will earn £90,000.

Fee-earners will also share in an uncapped firmwide bonus – this year paid at a level of 9.78% ignoring special Covid bonus payments – and are eligible for individual bonuses, which are not geared to hours worked. The firm said it expected newly qualified solicitors to earn in excess of £100,000 this financial year, taking into account all elements of their package.

In a similarly bullish vein, TLT has smashed through the £100m revenue barrier, posting  an 11% increase in turnover to hit £110m to coincide with the launch of a new strategy that targets revenues in excess of £140m by 2025.

The 2025 strategy will focus on anticipating and delivering against future client needs, through initiatives such as its FutureLaw programme and the further development of legal and near law capabilities. Investment will continue across its seven sectors, which include clean energy; digital; financial services; leisure, food & drink; public sector; real estate and retail & consumer goods.

It will also aim to keep equality, diversity, inclusion and wellness at the centre of TLT’s plans as the core pillar of the strategy. As part of that, the firm points to a recent multimillion pound investment in its tech platform and offices to support a shift to fully flexible working.

John Wood, managing partner at TLT, reflected on a strong position in his first year in the role: ‘We’ve worked hard to help clients manage the uncertainty and continuous change, as well as constantly looking forward to the challenges and opportunities that may lie ahead for their organisations. Growth has been consistent across all our services, sectors and locations – although each of our sectors have faced very different challenges triggered by the pandemic and the ongoing disruption that it has accelerated.

‘Clients rightly continue to expect more from their lawyers and our new strategy is about meeting that need – whether through our legal advice, transforming how we deliver services or supporting clients with the wider macro issues they face as true business advisers. That includes providing non-legal support on both the sustainability agenda and how best to rise to the challenges all businesses face around EDI and wellness.

‘Pandemic aside, breaking the £100m revenue mark is another significant step forward in our journey of continued and sustainable growth. But, we aren’t even close to done yet and, with our new strategy, will focus on looking ahead and delivering an outstanding service for our clients.’

Highlights for TLT over the last year include being re-appointed to the Sainsbury’s legal panel and securing roles on the Vodafone legal panel and UK government’s newly established trade law panel.

Watson Farley & Williams also reported its financials today, with slightly less dynamic performance over 2020/21, with income declining by 1% to £177m and a 4% dip in PEP to £553,000.

In a joint statement, managing partners Chris Lowe and Lothar Wegener said: ‘We are satisfied with the result as we entered the last financial year during a strategic review of our core business aimed at consolidating and investing in our strategy of sector focus. As part of that, we have opened two new offices in Düsseldorf and Sydney, welcomed ten lateral partners and made significant investments in our workplaces and business functions across the firm.

We are already seeing the benefit of our strategic focus with a strong first quarter to the current financial year, building on the 5% growth we saw in the second half of the last year.’

nathalie.tidman@legalease.co.uk

Legal Business

Kennedys opens 36-strong Leeds office as TLT and Clydes expand overseas 

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Office openings Clyde & CoKennedysTLT

In an expansive start to the new year, UK firms Kennedys , TLT  and Clyde & Co have established new frontiers at home and abroad.

Kennedys has opened its 42nd global office, and its 12th in the UK, with a Leeds launch via the acquisition of Langleys’ insurance team. The new office will be headed up by David Thompson, formerly managing partner and head of insurance at Langleys. He will be joined by three other partners and 32 team heads, lawyers and staff from the insurance group.  

Of the joining partners, Huw Edwards focuses on motor liability matters, Laura Collins manages a team which provides pre-litigated claims handling services to insurers and self-retained corporations, and Carol Dalton acts for insurers on public liability matters.

Thompson commented: ‘It puts us in an excellent position to further grow our practice from our new base in Leeds. Many of our clients already work with Kennedys so I know that it is a move that our clients will very much support.’

The opening comes at an intrepid time for Kennedys, with the firm establishing new bases in San Francisco and Israel last year along with an association with Canadian insurance firm Dalden Wallace Folick.

Meanwhile, Bristol-based TLT has entered into a strategic partnership with Belgian firm GSJ advocaten. The partnership is the second of its kind TLT has pursued on the continent, after a similar relationship was forged with Dutch outfit Holla in June last year.

The partnership brings synergies between the two in key sector specialisms such as real estate, financial services, retail and the public sector. It also gifts TLT a vital post-Brexit Belgian presence, in the heart of the EU.

TLT’s head of international Chris Owen told Legal Business that while Brexit was not a deciding factor in the partnership, it played an important role for clients: ‘A lot of our work is in retail and the public sector, which involves a lot of logistics, which is obviously a big issue at the moment for clients. They want us to have a presence in Europe as that is where they are doing business.’

Owen added that the tie-ups with Holla and now GSJ mark an ongoing demand from clients who want European support. He said: ‘In the long-term we are interested in France, Germany, Scandinavia and the Baltics are interesting from a fintech perspective.’

Finally, Clyde & Co has launched a new regulatory and investigations consultancy arm in Dubai through the hire of Neal Ysart. Ysart, who arrives from EY’s Dubai office, has over 35 years’ experience in investigations, including a 16-year stint in law enforcement, which involved a tenure at Scotland Yard.

The objective of the new consultancy is to provide Middle East-based organisations with an advisory service which recognises, investigates and manages the threat of financial crime and other regulatory risks.

The consultancy is made up of both lawyers and former regulators, and will be headed up by Clyde’s partner and head of regulatory and investigations in the Middle East, Matthew Shanahan.

Shanahan said: ‘Typically organisations have to engage both management consultants and lawyers to achieve their objectives. With Neal’s strategic experience and our team’s broad range and depth of expertise, this new service will provide a one-stop-shop that will save both time and money, and also help ensure that any legal or regulatory concerns are identified early.’

tom.baker@legalease.co.uk  

Legal Business

Legal Business Awards 2020 – Management Partner of the Year

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Legal Business Awards 2020 AshurstTLT

We now come to the penultimate award of our 2020 Legal Business Awards season and we are delighted to reveal our Management Partner of the Year.

The winner of this award is a UK-based managing partner, senior partner, head of chambers, chief executive or chief operating officer who truly led the way for their business in 2019. Key factors that influenced our judging panel included market profile, outstanding strategic thinking, superb communication skills and the extent to which these individuals have the support of staff and clients in driving the firm’s business forward.

 

 

Sponsored by

 

Winner – Paul Jenkins, Ashurst

That Paul Jenkins was reappointed as Ashurst’s global managing partner for a second four-year term last summer spoke volumes, reflecting the credit he has won for turning Ashurst’s fortunes around following a struggles with profit and revenue growth since the merger of Ashurst and Blake Dawson in 2013.

Hitting every metric for success for the 2018/19 financial year, with profit per equity partner increasing by 61% and revenue enjoying a 27% uptick, Ashurst acknowledges Jenkins for ‘the clarity of his vision, strength of his leadership and inimitable work ethic’. And justifiably so.

Jenkins has pioneered a sharp focus on key practice areas, the success of which is reflected in 90% of the firm’s revenue now being generated by those sectors, while performance has been bolstered across all regions and investment in Asia has yielded impressive results.

He has also won plaudits for streamlining the executive and promoting a high-performance culture, abolishing lockstep in favour of a merit-based remuneration system, stepping up staff performance reviews and encouraging collaboration.

Jenkins also oversaw the implementation of extended points and a bonus pool in which all partners can participate. Elsewhere, Ashurst Advance was made into a division of the firm, highlighting a heightened emphasis on innovation and digital transformation. The year also saw the launch of Ashurst Digital Ventures, the in-house development and investment arm of Ashurst Advance, which creates, designs and builds digital products.

Jenkins has also been commended for re-setting gender targets and for making strides in the firm’s diversity and inclusion agenda. He was the first law firm leader to join the Male Champions of Change programme in Australia, which works with leaders in the business community to redefine men’s role in promoting gender equality.

Ashurst says of its respected global managing partner: ‘The firm demanded transformative and decisive leadership, which is precisely what Paul Jenkins has delivered. He has ensured that Ashurst has continued to evolve, adapt and renew itself which has delivered for the firm, its people and its clients.’

Highly Commended – David Pester, TLT

April 2020 saw David Pester, one of the UK’s most successful and longstanding law firm leaders, step down as managing partner of TLT, a firm that he has taken from Bristol-focused contender to a top 50 firm in the Legal Business 100.

Since Pester was elected to the helm in 2001 following the merger of Trumps and Lawrence Tucketts to form TLT, revenue has grown from just £8m to £87.6m; the firm has opened six new offices; and increased in size to more than 1,000 staff.

His legacy as he made way for incoming managing partner John Wood has been a solid financial foundation and exceptional governance. In 2019 Pester said of his stepping down: ‘One of the things I’ve learned over 19 years is whenever you go through the different trading cycles there’s always opportunity. I’ve been making sure the TLT balance sheet is as strong as possible to take advantage of difficulties others may face in the market if it becomes more uncertain. John’s got a fantastic platform to work from.’

Other nominations

Charles Martin, Macfarlanes

Macfarlanes remains one of the most successful and profitable operators in the City, which is largely thanks to the outstanding leadership of senior partner Martin over the last 12 years. As the firm saw new leadership take over in April, it should acknowledge the contribution of Martin’s cool head at a time when many rivals were losing theirs. A class act.

Lee Ranson, Eversheds Sutherland

While Eversheds has had its fair share of successful and charismatic leaders over the years, Ranson has driven the firm during one of its most progressive phases since being elected in 2016. Financial performance has been strong since its transformative tie-up with Sutherland Asbill & Brennan, while the spin-off of alternative service Konexo in 2019 was the latest strategic masterstroke.

Michael Ward, Gateley

Ward hung up his boots in May after more than 30 years at Gateley, having achieved more than most law firm leaders possibly could. While remaining a shareholder in the UK’s first-ever listed law firm, Ward hands over a firm that has gone from a third-tier Birmingham outfit to a £100m national player via a tie-up in Scotland and a stock market listing.

Legal Business

Life During Law: David Pester

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Life During Law TLT

My family background is in market trading, selling goods and services, so perhaps I would have gone into that if not law. My mother worked as a receptionist and my father started out as a rep, including having a bicycle to go around and see the different stores and promote the products. He ended up in marketing and business development in a bigger corporation but that’s where he started.

Home is down on the south coast in Christchurch in Dorset but I went up to the University of Manchester, which was a big deal going from a small place to a bigger one.

Legal Business

New brooms – Asian coup for Bakers as Clydes, HSF and TLT announce leadership changes

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Leadership Baker McKenzieHerbert Smith FreehillsTLT

Anna Cole-Bailey rounds up the latest management reshuffles at home and abroad

The autumn saw significant c-suite changes announced at Global 100 and Legal Business 100 (LB100) players, with Baker McKenzie voting in Milton Cheng as its new chair in a victory for the Asia partnership, while the figureheads of Herbert Smith Freehills (HSF), TLT and Clyde & Co will step down to pave the way for successors.