Legal Business Blogs

PEP stays flat for Mishcon as revenue growth regains momentum

Mishcon de Reya has maintained steady revenue growth in its 2018/19 financial results, increasing its top line by 10% to £177.8m, as profit per equity partner (PEP) remained flat.

While the firm saw a greater revenue growth rate than the 8% uptick last year to £161.3m, PEP has failed to keep pace, with the flat result coming off the back of a 9% dip to £1m last year.

Turnover over the last few years has been relatively muted compared with a blistering 17% hike in 2016/17 and the firm’s pacey five year-growth trajectory of 82% since 2013.

Managing partner Kevin Gold (pictured) noted that the firm continued to grow and to thrive despite disruptive market conditions.

Earlier this month it emerged that Mishcon was considering options for raising capital as a means of funding its ‘ambitious plans’ for growth, including a possible stock market flotation.

Gold commented: ‘It has been reported that we are exploring raising capital. No decisions have yet been made. However we are and will remain committed to providing opportunities for our people to fulfil their potential.’

Mishcon said it plans to expand the business by branching into non-legal areas through the MDR Group. The firm launched MDR Brand Management in September last year, making it the fourth non-legal business within the firm. Gold said the firm aimed to be ‘technologically transformed’ to add value for clients and improve the business.