High flying City firm Mishcon de Reya has announced robust profits for the 2015/16 financial year, with profit per equity partner up 5% to £1m as revenue in London climbed to £127.9m from £110m.
New York revenue came in at £4.8m which constitutes a considerable drop, given the business in recent years generated upwards of £10m. This is due to the firm’s decision in recent months to downsize its Manhattan practice to provide solely IP advice.
UK net profit came in at £35m. A breakdown of UK revenue showed litigation generated the highest revenue with £44m, while real estate came second with £31m. Corporate followed with £20m, while the private wealth practice brought in £19m and employment generated £10m.
Following a year-long consultation with the partnership and external advisers, the firm recently revealed a refreshed strategy for the next decade, with a target to lift UK revenue by 40% to £175m within the next three years.
Mishcon said it would review its business strategy this summer in preparation for ‘opportunities and threats’ posed by the Brexit referendum.
The surprise majority vote to leave the EU in June has driven management at the firm to re-evaluate its position for the future, and prepare for a potential decline in transactional activity.
Speaking to Legal Business, managing partner Kevin Gold said: ‘My first instinct is that it’s too early to call the consequences of a Brexit. There was immediate shock the day after [the vote] …people are asking: “Oh, what do we do?” We think internally “what are the opportunities and the threats?” We will see if we need to make any adjustments to our business planning over the summer.’
Gold (pictured) added: ‘We’ve always been quite strict on budgeting but we’re reserving the right this year to go back after six months and look at our budgets if there’s a total slowdown of transactional work. We’re just going to have to be realistic about that.’
On whether the review could lead to a reduction in staff headcount, Gold said: ‘I would never say never but we’ve no intention of that at this stage.’
The news coincides with the firm’s recent announcement that it launched a legal action over the triggering of article 50 and the process of Brexit. The firm is bringing the case on behalf of clients, which will be named if the case progresses to litigation, to ensure the UK does not begin the process of leaving the European Union without an act of parliament.