Page 138 – Legal Business

12 August 2020

DLA shakes off coronavirus jitters to crack £2bn global revenue amid 7% profit hike

DLA Piper has pulled off a fifth consecutive year of profit growth for its International LLP while breaking the £2bn barrier for global turnover and exceeding £1m in profit per equity partner (PEP).

The eye-catching set of results will be a shot in the arm for the firm, even as the coronavirus pandemic continues to threaten international businesses, and builds on a similarly robust showing last year in spite of sustained investment in DLA’s infrastructure. Continue reading “DLA shakes off coronavirus jitters to crack £2bn global revenue amid 7% profit hike “

10 August 2020

Revolving doors: lateral hire season back with gusto as raft of senior moves announced

The first week of August saw the lateral recruitment market resume in earnest, with a bumper spate of partner hires unveiled.

Unsurprisingly the majority of acquisitions were made in corporate, with the deal market showing real signs of improvement . Herbert Smith Freehills led the way in the City with the addition of Kirkland & Ellis partner David D’Souza, a well-known private equity specialist who has regularly advised sponsors such as BC Partners, Blackstone and Permira. Continue reading “Revolving doors: lateral hire season back with gusto as raft of senior moves announced”

6 August 2020

Dealwatch: Sign of the times as elite firms tap into $6.8bn IP deal, beleaguered restaurants buyout and oligarch asset disposal

Difficult as it may be to imagine an upside amid a pandemic, clients have proved surprisingly resourceful in the face of adversity, handing corporate advisers on both sides of the pond opportune mandates in the past week.

CPA Global’s investment in New York-listed analytics business Clarivate was particularly notable, not least because of the $6.8bn enterprise value it gave the company. Continue reading “Dealwatch: Sign of the times as elite firms tap into $6.8bn IP deal, beleaguered restaurants buyout and oligarch asset disposal”

6 August 2020

‘Only certainty is even more uncertainty’: Addleshaws shows endurance as firm steels itself for year ahead

Addleshaw Goddard adhered to an increasingly familiar trend over the last financial year, the firm’s latest figures show, with revenues proving resilient in the last months of 2019/20 while partner profits took a minor dent.

Turnover was up 4% to £288m from £275m the previous financial year, when the firm exceeded all expectations as revenue soared 14%. However, profit per equity partner (PEP) endured a modest decline, falling 5% to £690,000 from £727,000 in 2018/19, when the figure jumped by 12%. Over 80% of revenue was generated through energy and utilities, financial services, health, real estate, retail and consumer, and transport. Continue reading “‘Only certainty is even more uncertainty’: Addleshaws shows endurance as firm steels itself for year ahead “

6 August 2020

‘Year of two halves’: Coronavirus takes gloss off financials for OC as revenue lifts 5% and profit drops

Osborne Clarke’s latest financial results have proven to be a mixed bag as it recorded a 5% uptick in international revenue to €318m even as profit fell amid a year of investment.

Nevertheless, the revenue uplift from last year’s €304m is a positive showing and stands out as a 63% increase over five years. Continue reading “‘Year of two halves’: Coronavirus takes gloss off financials for OC as revenue lifts 5% and profit drops”

5 August 202023 July 2024

Life During Law: Andrew Ballheimer

I’m the son of immigrants and they were intent that I had an education, so I had to become a professional. To be honest, I was only going to practise law for two years and then do something else.

The first thing I ever did as an associate was spend all night perfecting a document, checking every page. Two-months qualified at the signing, I handed over the execution page. I’d misspelt the client’s name. You spend all this time getting it right and everything’s perfect except for the most important word in the document. His bloody name! Continue reading “Life During Law: Andrew Ballheimer”

5 August 2020

‘Future-proofing’: DAC lifts profit and revenue for sixth consecutive year as Pollitt secures second leadership term

DAC Beachcroft (DACB) has notched its sixth consecutive year of turnover and profit growth, the firm’s latest financial results show, while also announcing that managing partner David Pollitt has secured a second term at the helm following an uncontested leadership election.

Revenue at the firm grew 6% to £258m, up from £243m last year, while profit before tax increased 7% to £56m. Profit per equity partner also grew, up a modest 3% to £590,000. Meanwhile, the firm improved its net cash position to £8m, having put in place ‘significant liquidity retention measures in response to the Covid-19 crisis’. Continue reading “‘Future-proofing’: DAC lifts profit and revenue for sixth consecutive year as Pollitt secures second leadership term”

5 August 202023 July 2024

Life During Law: Andrew Ballheimer

4 August 2020

‘A fair bit of progress’ – Brodies withstands year-end turbulence to increase revenue and operating profit

Scottish leader Brodies is the latest firm in the LB100 to display its fiscal resilience, growing revenue and operating profit despite a significant Covid-19-induced slowdown during the closing months of 2019/20.

Revenue at the Scottish independent was up 7% to £82m from £76.9m last year, making it 10 years of consecutive growth at Brodies and a 20% increase over the last two years. Operating profits, meanwhile, underwent a more muted 3% rise to £38.5m while profit per equity partner (PEP) suffered a 4% drop to £680,000 amid headcount increases. Continue reading “‘A fair bit of progress’ – Brodies withstands year-end turbulence to increase revenue and operating profit”

3 August 2020

Revolving Doors: DWF appoints senior hand in critical management refresh as experienced players move to and from G100 firms

The past week has seen some senior hands move to and from large international law firms, not least DWF Group refreshing its c-suite with experience to help CEO Sir Nigel Knowles at a critical time for the business.

DWF has, following a ‘recruitment process’, appointed the current chair of Morgan Stanley International, Jonathan Bloomer, as its new chairman with effect from 1 August. Meanwhile, Chris Sullivan, who stepped up to become interim chairman, when former chairman Knowles took over from outgoing CEO Andrew Leaitherland in May, will now become deputy chairman. Continue reading “Revolving Doors: DWF appoints senior hand in critical management refresh as experienced players move to and from G100 firms”

3 August 2020

‘Complacency not an option’ at Penningtons as revenues and profits hike following 2019 merger

Penningtons Manches Cooper produced a strong showing in 2019/20, the firm’s latest financial results show, with revenue and profits both enjoying an uptick following last summer’s tie up between legacy firms Penningtons Manches and Thomas Cooper.

Revenues rose 17% to £93m over the last financial year, up from £79.5m last year, while overall profits soared to £28m after a disappointing 15% drop last year to £14.5m. Disputes has become the main engine room at the firm, producing more than 50% of Penningtons’ material output following a focus on growing its contentious practices. Continue reading “‘Complacency not an option’ at Penningtons as revenues and profits hike following 2019 merger”

3 August 2020

Revenues soar at Ince but stop just shy of £100m target after tumultuous year

Listed law firm Ince Group, which previously operated as Gordon Dadds, has produced impressive double-digit revenue growth in its first full financial year since the acquisition of shipping specialist Ince & Co.

Revenues soared an impressive 87% to £98.5m, narrowly missing the £100m target set by Ince Group CEO Adrian Biles last November, while operating profit rose a hefty 72% to £26.2m from £15.2m last year. However, Ince’s organic growth produced a more muted 5% growth, according to the firm’s announcement on the London Stock Exchange. Continue reading “Revenues soar at Ince but stop just shy of £100m target after tumultuous year”

3 August 2020

Defying gravity – double-digit boost marks a decade of revenue growth for Macfarlanes

Macfarlanes has reported robust financial results for 2019/20 – its tenth consecutive year of revenue growth – with virtually double-digit increases in turnover and profit per equity partner (PEP).

Added to this, the firm has also announced an 88% retention rate of trainees qualifying next month, as well as the lateral hire of well-regarded finance partner Malcolm Hitching. Continue reading “Defying gravity – double-digit boost marks a decade of revenue growth for Macfarlanes”

31 July 2020

‘Not out of the woods yet’: Coronavirus puts the kibosh on Travers’ decade of revenue growth amid profit dive

Travers Smith has suffered one of its biggest financial setbacks due to the coronavirus pandemic, recording an 11% slump in net profit and a 20% fall in profit per equity partner (PEP), its provisional results revealed.

The provisional figures, announced on Thursday (30 July) show a 1% revenue drop to £160.9m from £162.5m last year, stymying a decade-long run of uninterrupted turnover growth. PEP fell to £1m, with the results being adversely affected by a reporting period that ran to the end of June, rather than April, giving the firm greater exposure to the pandemic downturn. Continue reading “‘Not out of the woods yet’: Coronavirus puts the kibosh on Travers’ decade of revenue growth amid profit dive”

31 July 2020

Investments pay off at Withers as PEP surges while turnover breaks £200m

Withers saw profit per equity partner (PEP) enjoy a hefty rise over 2019/20, with a period of international expansion beginning to bear fruit at the top-30 LB100 firm. Revenue, meanwhile, enjoyed a double-digit rise as the firm steels itself for a ‘volatile’ year ahead.

PEP enjoyed a striking 41% hike to £501,000, up from £354,000 last year when partner profits endured a 12% drop, although the firm’s equity ranks did shrink by five partners across 2019/20. Overall profit now stands at £42.1m, a 34% increase, while revenues enjoyed a 14% rise to £219m, up from £193.2m. Continue reading “Investments pay off at Withers as PEP surges while turnover breaks £200m”

30 July 2020

Guest comment: Corporate values mean nothing without cost – City law’s moment has come to champion diversity

An institution’s values and commitment to inclusion are only real when tested. It is in challenging times that we decide whether we embrace those values and these are the defining moments that ultimately prove their worth. Amid a global pandemic, political upheavals, the killing of George Floyd and the subsequent movement that has flowed from his death, the profession’s actions will show if our values are either luxury items to be paraded when convenient or the rock on which we build our business.

It is precisely now beset by challenges that we need to put inclusion at the heart of our decisions. Leading law firms have often waxed lyrical about commitments to diversity; now is the moment to step up if we truly believe inclusion is a core value and an economic imperative. Continue reading “Guest comment: Corporate values mean nothing without cost – City law’s moment has come to champion diversity”

30 July 2020

Stewarts steels itself for the hit as it reports solid financials for 2019/20

Disputes specialist Stewarts has seen double-digit revenue growth for two years on the spin, posting an 11% increase in turnover to £77m for 2019/20, up from £69m from the previous financial year when it increased just shy of 11%. Profit per equity partner, meanwhile, saw a modest 3% increase to £1.25m; a needed rebound after the figure plummeted 16% in 2018/19.

The latest results show Stewarts’ continued recovery after its 2017/18 setback , where ‘non-linear’ income patterns from contingency work accounted for revenue falling by a fifth. The broader picture is that revenues over a five-year period have enjoyed a healthy uptick – rising almost 46%. Continue reading “Stewarts steels itself for the hit as it reports solid financials for 2019/20”

30 July 2020

WFW not ‘singing from the rooftops’ as it defies pandemic blues to post revenue and profit uptick

Watson Farley & Williams is the latest City firm to post robust revenue and profit figures in the face of adversity in the 2019/20 financial year.

The firm said yesterday (29 July) that fee income was up 4% to £179.6m from last year’s £172.3m as profit per equity partner (PEP) saw a 3% uplift to £577,000 from £562,000. Profit was up a respectable 13% on last year to £53.7m from £47.5m, capping off a bullish set of results. Continue reading “WFW not ‘singing from the rooftops’ as it defies pandemic blues to post revenue and profit uptick”

30 July 2020

‘High levels of uncertainty’: Eversheds braces for testing times amid robust revenue and profit lift

While few global firms expect to emerge unscathed from the Covid-19 crisis, Eversheds Sutherland (International) has nevertheless followed many peers in reporting robust revenue and profit increases in the 2019/20 financial year.

The figures released on Thursday (30 July) for the non-US parts of the business struck a bullish tone, with revenue up a solid 8% to £592m from £548.8m last year and a net profit increase of 5% to £108.8m

Profit per equity partner (PEP) also saw a slight 2% uptick to £902,000 on the back of last year’s 9% uptick to £886,000.

Whereas chief executive Lee Ranson (pictured) was last year nervous of a market slowdown as a result of Brexit, what he called ‘the uncertainty barometer’ has now shifted towards gloomy thoughts of a pandemic fallout.

‘These are a good set of results which were delivered against a challenging global economic and geopolitical landscape, compounded in the last two months of the financial year by Covid-19,’ said Ranson in a statement.

‘Our strategy has continued to drive strong growth while allowing us to make a number of significant investments across the year, specifically in people, property and our core and client-facing IT offerings. 

‘While the business has responded well to the challenges and uncertainty created by the pandemic, and adapted quickly to the changing priorities and needs of our clients, there is no doubt that the year ahead will be testing for us all given the high levels of uncertainty across the world,’ Ranson concluded.

The sentiment is one that would be circulating around the Square Mile if law firm leaders were not all stuck at home. With the pandemic appearing only on the tail end of the 2019/20 reporting period, it is anyone’s guess as to how it will pan out in the financials for the current year.

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29 July 2020

Resilient HSF closes in on £1bn revenue but profits fall with increased operating costs

Herbert Smith Freehills (HSF) has become the latest international firm to post resilient turnover growth in the face of the Covid-19 crisis but increased operating costs and a drop in productivity saw profits tumble in 2019/20.

Revenues at the Anglo-Australian giant increased 2.5% to £989.9m, up from £966m last year when revenues grew 4%. However, profits saw a significant decline, falling almost 8% to £283.2m while profit per equity partner dropped almost 10% to £857,000 from £949,000 last year. Continue reading “Resilient HSF closes in on £1bn revenue but profits fall with increased operating costs”