Legal Business Blogs

Mergers helps drive 11% revenue growth at CMS with profits up 3%

With two mergers under its belt in 2014, CMS has unveiled double digit growth in revenue for the financial year ending 31 December 2014 with turnover up by 11% to €934.5m (£753.3m).

Although it constitutes a marked turnaround from revenues the year before, which showed a marginal increase of 1% to €842.1m from €837.7m for the year ending December 2013, it benefits from CMS Cameron McKenna’s merger with Dundas & Wilson and a tie-up with Swiss law firm ZPG Avocats.

The 800-partner firm said today (11 June) its net profits also rose 3.3% during that period although it has not provided exact figures. In the UK, turnover was up 37% to £219.7m for the 2014/15 financial year – up from £159m generated the previous year before its Scottish merger took effect on 1 May 2014. The figure implies UK operations also saw organic growth with the tie-up having previously been pegged to add around £45m to the top line.

CMS’ managing partner Duncan Weston (pictured) said: ‘Our combination with Dundas & Wilson has had excellent client feedback and strengthened our UK sectors, practices and our ability to provide clients with greater choice in service delivery. Our technology and efficiency programmes are bringing benefits to our clients and to our firm. As we move into our contemporary new London HQ at Cannon Place, we look forward to the year ahead.’

With a strategic focus on technology, media and communications, energy, financial services, life sciences and disputes, major mandates for the firm included advising Telefónica Deutschland on a cash capital increase of €3.62bn to finance its acquisition of E-Plus from KPN; advising Spain’s Almirall on the $2.1bn transfer of rights to its respiratory franchise to AstraZeneca; and advising Aldwych International on its €600m investment in the Lake Turkana Wind Power Project, to deliver low-cost reliable wind power to the Kenyan national grid.

Executive chair Cornelius Brandi said: ‘We are very pleased with the firm’s excellent revenue growth in 2014, in spite of the geo-political volatility in many regions in which we operate.

‘Even more important to us than the financials are the level and quality of mandates that we receive. We have advised on some of the largest deals in Europe, and we have been ranked number one in Europe by deal count for the fourth time in five years.’