H1 2013/14: A&O discloses revenue rise of 7.5%

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Financial results 2013/14 Allen & Overy

The first of the Magic Circle firms to disclose its 2013/14 half year (H1) results, Allen & Overy (A&O) has done so in reasonable style, starting the year with a 7.5% rise in revenues thanks in large part to strong performances in its litigation and finance practices.

H1 turnover at the 2,700-lawyer firm increased to £608m, marking a significant improvement on this time last year, when its 2012/13 H1 revenues dipped by 2.7% on the previous year from £582m to £566m.

While A&O, in keeping with the majority of City firms does not disclose its mid-term profits, managing partner Wim Dejonghe (pictured) told Legal Business that the results were ‘encouraging’.

Merger watch: Hogan Lovells to tie-up with South Africa’s Routledge Modise

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Legal mergers Hogan Lovells

Hogan Lovells is to combine with South African law firm Routledge Modise, with the union set to go live on 1 December.

The Johannesburg office will comprise 120 lawyers, including 40 partners, and will focus on corporate, commercial, litigation, mining and employment work, while Routledge Modise is expected to rebrand and relaunch as Hogan Lovells in early 2014.

The top 10 LB100 firm informed its partners of the move today (19 November) and said in a statement that a physical presence in Africa has become increasingly important as the majority of its top 200 clients have operations on the continent.

Panel win: Bank of Tokyo Mitsubishi UFJ announces first-ever EMEA line-up

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Adviser reviews

One of Japan’s largest banks, Bank of Tokyo Mitsubishi UFJ (BTMU) today announced its first-ever panel for Europe, the Middle East and Africa, with eight leading City firms appointed as preferred advisers after a process described by the bank as ‘extremely competitive.’

Allen & Overy (A&O), Linklaters and Ashurst won places on BTMU’s preferred panel alongside Berwin Leighton Paisner (BLP), Hogan Lovells, Norton Rose Fulbright, Slaughter and May and White & Case.

NRF loses second competition veteran as Mark Jones joins Hogan Lovells

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Strategic recruitment Hogan LovellsNorton Rose Fulbright

Hogan Lovells has confirmed its latest lateral hire is Norton Rose Fulbright longstanding antitrust partner Mark Jones, who is to join the antitrust, competition and economic regulation (ACER) practice at the transatlantic firm in the New Year.

Jones is experienced in various aspects of competition law including behavioural and market investigations, merger control and compliance and utilities regulation, across the energy, infrastructure, insurance, and retail sectors.

On your merit: RPC abolishes flat rate salary for NQs

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Salaries RPC

City law firm RPC has taken the final steps to adopting an entirely merit driven pay model as it today (19 November) announced that from September 2014 it will abolish the traditional flat rate salary for newly-qualified solicitors (NQs) in the UK, and subsequently move to a system linked to merit and market rates.

In a move said to take into account what is happening in other sectors and the pressures that clients are under to achieve value, the firm will operate a variable pay scale where the strongest NQs entering their careers ‘in the most competitive areas of the profession,’ will be eligible to earn salaries above those currently offered by major City firms, a firm statement said today.

Hill Dickinson sees H1 revenues up 6% following summer cash call

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Financial results 2013/14 Hill Dickinson

Top-40 LB100 firm Hill Dickinson has posted a half year increase in revenues from £54.9m from £51.9m this time last year, after asking members to increase their capital contributions during the summer.

The 520-lawyer firm issued a £2.8m cash call in August after a year of heavy investment, including opening an office in Monte Carlo and Hong Kong. The firm then underwent a strategic review earlier this year which included the sale of its Chester office in July to Knights Solicitors and announcing 83 redundancies.

Some eye watering growth statistics later and its goodbye from Latham’s Bob Dell

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Leadership Latham & Watkins

When the ordinarily press-shy chair and managing partner of Latham & Watkins, Robert Dell, gave Legal Business his first-ever in depth interview in 2005, the interview began by reminding the reader that ‘Latham & Watkins used to be little more than a Los Angeles-based tax firm with ideas above its station.’

At the time of that interview Dell, who is widely recognised as one of the greatest law firm leaders of his time, had already been at the helm for ten years, since when revenues had grown an eye watering billion dollars, from $260m to $1.2bn in 2004, with profits per equity partner (PEP) having doubled from $550,000 to $1.4m.

Scroll forward almost another decade to last week’s announcement that Dell is retiring, and the most up to date comparative data again serves as a stark reminder of just how far the firm has come.

At last a City deal for Wragge & Co? Midlands giant aims for £170m tie-up with Lawrence Graham

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Legal mergers Gowling WLG

Wragge & Co at last has the prospect of achieving its long-held dream of securing a substantive City merger, with the Birmingham-bred giant today (18 November) informing its partners of discussions with Lawrence Graham.

The proposed talks could create a £170m legal practice, with over 700 lawyers and a strong City presence.

Learning to live together – HSF strives to thrash out compromise on partner pay as key vote looms

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Leadership Herbert Smith Freehills

It often seems getting a deal agreed is the hardest part – as in the case of Herbert Smith, which in 2012 agreed to combine with Australian leader Freehills – but working out those thorny integration issues can make you long for the simplicity of a straight merger vote.

Almost 18 months after agreeing its union Herbert Smith Freehills (HSF) is still thrashing out how to make its combined remuneration system work, having originally been expected to agree a model in October that would see the combined firm move to a variant of Freehills’ aggressively modified lockstep.

Blazing a trail: DWF unveils 58% H1 revenue growth and increased profits

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Financial results 2013/14 DWF

It set the market on fire this year after picking of the lion’s share of Cobbetts at the end of an explosive 18-month spell of consolidation, so it comes as no surprise that DWF has posted a 57.5% increase in half-year revenues to £93.6m from £59.4m this time last year.

According to the 984-lawyer, top 25 firm, over 10% (£6m) of its reported revenue growth is organic, the remainder stemming from the firm’s merger with Fishburns and acquisition of Cobbetts, both in February 2013. The firm said profits were also up significantly at the half-year stage, although it was unable to provide any figures yet.