Page 62 – Legal Business

4 August 2023

Revenue and PEP plummet at Stewarts as ‘non-linear growth’ continues

Litigation specialist firm Stewarts today posted financial results that saw revenue fall by 25% to £85.1m. Net profit and PEP both fell by 56%, with profit down to £25.6m and PEP down to £1.2m, its lowest figure since 2019.

The firm also reported its equity spread, which shows that its highest earner took home £1.7m, while payouts at the bottom of the ladder were just over £592,000. This is down from £3.4m at the top end and £1.2m at the bottom last year. The number of equity partners was steady at 21. Continue reading “Revenue and PEP plummet at Stewarts as ‘non-linear growth’ continues”

3 August 2023

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

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. Continue reading “Financials 2022/23: Revenue up 9% at TLT but PEP dives 27%”

3 August 2023

‘Good growth in a challenging market’: Bird & Bird notches 31st consecutive year of growth as turnover hits £495m

Bird & Bird today (3 August) posted a strong set of financial results showing growth in revenue, profit, and PEP. Turnover went up by 10% to hit £495m. This is in line with last year’s growth, though currency fluctuations mean the increase is less impressive in euros: up 9% to hit €573m, compared to euro growth of 15% last year.

Net profit increased by 8% when measured in sterling and 7% in euros, to £108.4m/€125.4m. PEP, too, ticked up slightly, increasing by 2% in sterling to £669,000 (1% in euros, to €774,000). Continue reading “‘Good growth in a challenging market’: Bird & Bird notches 31st consecutive year of growth as turnover hits £495m”

3 August 2023

Addleshaw stands out from subdued market with 18% revenue and profit rise

Addleshaw Goddard has repeated last year’s outstanding performance in another set of promising financial results today (3 August), reporting a 18% increase in revenue growth from £377m to £443m, matched by an 18% rise in total profit from £155m to £184m.

PEP is estimated to be £909,000 by Legal Business, an increase of 5%. Continue reading “Addleshaw stands out from subdued market with 18% revenue and profit rise”

2 August 2023

Financials 2022/23: Revenue up 9% at Charles Russell Speechlys as firm targets overseas growth

Charles Russell Speechlys today (2 August) posted financial results that saw revenue tick up by 9% to hit £193.7m, while profit dipped by 8% to £37.1m. PEP also fell very slightly, from £524,000 to £521,000. The firm reported a total of 73 equity partners, down from 77 last year, while total lawyer headcount increased from 546 to 603.

Revenue from outside the UK was up 18%, after increasing by 24% last year. Overall growth across the UK’s sector teams was just below 7%, with the higher increase in the business advisory and transactions and dispute resolution divisions, which each grew by 9%. The private client division, meanwhile, saw revenue increase by 4%. Continue reading “Financials 2022/23: Revenue up 9% at Charles Russell Speechlys as firm targets overseas growth”

2 August 2023

‘Following a trend across the industry’: Dentons reveals deceleration in revenue growth against backdrop of high inflation

Dentons has released its financial results for its UK, Ireland and Middle East business, reporting a significant decrease in the rate of revenue growth from last year’s 14% spike to a modest 2% increase from £260.4m to £265.1m this year.

In an interview with Legal Business, chief executive for the UK and the Middle East, Paul Jarvis (pictured), spoke about the significant deceleration in the rate of revenue growth: ‘Our financials are following a trend that we are seeing across the industry. Last year was a record performance for us, but we are not disappointed with our results this year. We are in a high-inflation environment, and we are clear that our strategy is not about growing revenue for revenue’s sake, but to ensure that we continue to grow in a sustainable way.’ Continue reading “‘Following a trend across the industry’: Dentons reveals deceleration in revenue growth against backdrop of high inflation”

2 August 2023

One in, one out: Deal star Johnson to exit Kirkland as Membrillera joins from Paul Weiss

Roger Johnson, among the first wave private equity stars to defect to Kirkland & Ellis from the Magic Circle, has left the Chicago powerhouse’s London office.

The move was quickly followed by news that Kirkland has hired the well-respected private equity partner Alvaro Membrillera from Paul Weiss in the City, where he was London managing partner. Continue reading “One in, one out: Deal star Johnson to exit Kirkland as Membrillera joins from Paul Weiss”

1 August 2023

‘Testament to the enduring strength of our strategy’: Clyde & Co reports increase in revenue and profit as BLM merger beds in

Clyde & Co today (1 August) reported a 22% increase in revenue to £786.6m – a combination of 6% organic growth and the impact of its merger with BLM, which finalised last July. This marks the firm’s 25^th consecutive year of growth, with revenue up 115% over the decade.

Profit was also up 6% to £169.2m, while PEP held steady at £708,000. Continue reading “‘Testament to the enduring strength of our strategy’: Clyde & Co reports increase in revenue and profit as BLM merger beds in”

31 July 2023

Revolving Doors: International and domestic firms bolster finance, infra and disputes teams

Leading the high-profile moves last week, Paul Hastings has expanded its energy and infrastructure practice with the hire of Alistair McKechnie after a string of recent prominent hires that include Jessamy Gallagher and Stuart Rowson. McKechnie specialises in infrastructure finance and acquisition finance.

Speaking to Legal Business about the move, McKechnie he said: ‘There is undeniable momentum at Paul Hastings right now, and it’s clear the firm is on an upward trajectory both on a global level and in London. I watched with interest the hires of Jessamy and Stuart at the start of the year: it was clear they were building something unique in the sense that they go to market as a fully integrated energy and infrastructure practice, combining specialist capability across disciplines, and, crucially, covering both M&A and finance.’ Continue reading “Revolving Doors: International and domestic firms bolster finance, infra and disputes teams”

28 July 2023

‘Unnecessary bedwetting’ – litigation funders moved to allay fears following Supreme Court blow

The UK litigation funding industry has been left scrambling to renegotiate contracts in the wake of a Supreme Court judgment earlier this week (26 July) which ruled that many of the funding agreements used for group action competition cases are unenforceable.

The judgment, which relates to the high-profile cartel case brought against DAF and other truck-makers, ruled that litigation funding agreements (LFAs) allowing funders to recover a percentage of damages awarded constitute damage-based agreements (DBAs), which are not allowed in collective actions in the Competition Appeal Tribunal (CAT). Continue reading ” ‘Unnecessary bedwetting’ – litigation funders moved to allay fears following Supreme Court blow”

28 July 2023

‘Sharpens the focus’: Turnover and PEP stall at Travers after challenging year

A turbulent year of partner losses has culminated in disappointing financials for Travers Smith as revenue edged up only 1% to £197.5m from £195m in 2021/22.

Profit per equity partner (PEP) too was flat at £1.1m compared to last year’s £1.105m after a 9% drop in 2021/22 from £1.22m. Continue reading “‘Sharpens the focus’: Turnover and PEP stall at Travers after challenging year”

27 July 2023

A&O names Garousha interim managing partner ahead of Shearman merger vote

The board of Allen & Overy has chosen Abu Dhabi capital markets partner Khalid Garousha (pictured) as interim global managing partner as the dust has started to settle on the shock resignation of Gareth Price.

The move, announced today (27 July), came after senior partner Wim Dejonghe covered the role since the firm on 13 July announced Price’s departure for ‘personal reasons’ at the same time as releasing its financial results. Continue reading “A&O names Garousha interim managing partner ahead of Shearman merger vote”

26 July 2023

‘Holding ourselves accountable’: Slaughter and May tackles social mobility challenge with 2033 targets

Slaughter and May has stuck its head above the parapet on the thorny issue of social mobility, outlining ambitious targets for 2033, in what will be seen as a bold move at the elite end of the profession.

Over the next decade the firm aims to increase its representation of individuals from a lower socio-economic background (LSEB) by 25% across its total workforce population from a baseline of 18.8%. Broken down across fee earners and business services professionals, Slaughters intends to increase its lawyer population from such backgrounds to 15% from a baseline of 10% and its business services population to 40% from a baseline of 34.7%. These targets measure a person’s socio-economic background by using parental occupation at the age of 14 as a metric. Continue reading “‘Holding ourselves accountable’: Slaughter and May tackles social mobility challenge with 2033 targets”

26 July 2023

‘No-one has managed to build out of the key locations’: Eversheds’ Ranson discusses Asia strategy following KWM tie-up

Following the announcement last week that Eversheds Sutherland has entered into a formal cooperation agreement with Chinese firm King & Wood Mallesons (KWM), Legal Business spoke to Eversheds’ chief executive officer Lee Ranson about the arrangement and the implications for both firms.

Under the terms of the deal, KWM will exclusively refer all its clients requiring legal advice in the UK, Europe, Middle East, Africa and South America to Eversheds, while Eversheds will refer all its international clients in need of PRC legal counsel solely to KWM. Continue reading “‘No-one has managed to build out of the key locations’: Eversheds’ Ranson discusses Asia strategy following KWM tie-up”

26 July 2023

‘The strategy delivers’: Freshfields sees 8% revenue rise but PEP growth stalls

Freshfields Bruckhaus Deringer today (26 July) announced its 2022/23 financial results, marking a seventh consecutive year of revenue growth for the firm.

Its revenue has increased by 8% to £1.84bn from £1.7bn in the previous financial year, a similar increase to last year’s 10% rise. Freshfields is the last of the four international magic circle firms to reveal its results. However, unlike Allen & Overy and Clifford Chance, Freshfields is yet to break the £2bn barrier. In its recently released financials, A&O’s revenue increased by 8% from £1.94bn to £2.1bn, while CC achieved a revenue increase of 5% from £1.969bn to £2.062bn.

Freshfields’ profit per equity partner (PEP) has remained flat with a 1% increase to £2.09m from £2.07m last year, in contrast to last year’s solid 8% growth. Continue reading “‘The strategy delivers’: Freshfields sees 8% revenue rise but PEP growth stalls”

25 July 2023

Linklaters sees 2% profit decline as revenue falls short of the £2bn milestone

With financial reporting season in full swing, Linklaters is the latest Magic Circle firm to drop its financial results, reporting a 7% revenue increase from £1.8bn to £1.9bn, seeing it fall just short of the $2bn turnover barrier passed by both Allen & Overy and Clifford Chance recently.

Pre-tax profit is down by 2% to £854m from last year’s £872m, translating to a 5% decline in PEP from £1.87m to £1.78m. Continue reading “Linklaters sees 2% profit decline as revenue falls short of the £2bn milestone”

25 July 2023

‘We are on the right course’: Fieldfisher sees double-digit revenue jump as PEP falls by same percentage

Fieldfisher has reported an 11% rise in firm-wide revenue to £370m from £330m, marking ten years of consecutive revenue growth for the firm. However, profit per equity partner (PEP) fell 11% to £930,000 from £1.05m in the previous financial year.

Broken down geographically, the firm recorded a 9% rise in revenue at its London office, a 12% rise in revenue at its Birmingham office and a 13% rise in revenue at its Manchester office. In Europe, the firm recorded a 22% rise at its German office, a 20% rise at its Belgium office, a 9% rise at its Ireland office, and an 8% rise at its French office. Continue reading “‘We are on the right course’: Fieldfisher sees double-digit revenue jump as PEP falls by same percentage”

24 July 2023

‘Outcome still satisfactory’: revenue, profit and PEP drop at Macfarlanes as Mishcon continues growth

Macfarlanes has today (24 July) posted results that show declines in turnover, profit, and PEP for the past financial year. Turnover dropped 2% to £296.6m, while operating profit fell 6% to £151.4m. The decline in PEP was steepest: a fall of 16% took it to £2.1m.

The results mean an end to a 12-year streak of growth that saw its PEP surge past its rivals, with last year’s £2.49m placing it behind just Slaughter and May and Stewarts in the list of firms with the fastest-growing PEP in our 2022 LB100. Continue reading “‘Outcome still satisfactory’: revenue, profit and PEP drop at Macfarlanes as Mishcon continues growth”

20 July 2023

‘Improving growth has not been an easy task’: HSF posts record financials amid challenging conditions

Herbert Smith Freehills has marked a decade of consecutive annual growth with its latest financial results, posting the highest revenue, profit and PEP in the firm’s history.

Revenue has increased by 8% from £1.103bn to £1.186bn, while net profit and PEP are up by a more modest 2% and 1% respectively. PEP moved from £1,163,000 to £1,173,000 for 2022/23. Continue reading “‘Improving growth has not been an easy task’: HSF posts record financials amid challenging conditions”

19 July 2023

Mixed bag for Clifford Chance as it joins the £2bn revenue club but profits and PEP stall

Clifford Chance (CC) today (19 July) became the second Magic Circle firm to post revenues in excess of £2bn after Allen & Overy achieved that milestone last week.

CC’s headline turnover figure of £2.062bn showed an increase of 5% on last year’s £1.969bn, and marks the eighth consecutive year of revenue growth for the firm. Continue reading “Mixed bag for Clifford Chance as it joins the £2bn revenue club but profits and PEP stall”