Legal Business Blogs

Simmons sees marginal drop in turnover and PEP

Simmons & Simmons has released its financial results for 2012-13, posting a slight dip in revenues from £251.7m to £250.3m while profit per equity partner (PEP) is down from £529,000 to £525,000 – a drop of about 0.6% – following a year of international expansion.

The financial results, which remain unaudited since their appearance in the Global 100 last week in which Simmons ranks in 93rd place, show that the firm’s net income has remained largely static, up from £66.2m in 2011-12 to £66.3m in 2012-13.

Meanwhile the firm’s top of equity has also dropped from £975,000 in 2011/12 to £950,000 in the latest financial year and the lowest paid equity partner now receives £270,000, down £5,000 on the year before.

Disputes and finance still make up the highest proportion of work for the firm; 33% and 38% respectively. Corporate work has dropped slightly on last year, accounting for 21% of total revenues while the firm’s employment practice generated 8% of the firm’s revenues over the past financial year.

The number of lawyers at the firm has grown from 782 to 813 in total and the number of equity partners has increased by one from 125 to 126, while the number of non-equity partners has also expanded from 78 partners to 85.

These results follow a strong financial performance from the firm in 2011-12, which saw Simmons post a 4% increase in revenues and an 18% increase in PEP. During the past financial year it has opened offices in Bristol, Munich and most recently Singapore, its fifth office in Asia, and in October last year secured an alliance with US hedge fund boutique Seward & Kissel.

However, this year’s Global 100 shows that the firm’s turnover has seen the greatest drop between 2007 and 2012 of all the top 100 firms, falling 31%, and the firm is perceived by many in the market as struggling to find its footing in absence of a full US merger.