Freshfields saw revenue grow by 6% to £2.25bn during the 2024-25 financial year, the firm’s newly filed limited liability partnership accounts have revealed.
This is the second year that the firm has not announced financial results in line with other UK peers in the summer, instead opting to hold back confirmation until its LLP filing with Companies House.
The accounts show that profit available for division amongst members dipped by 2.5% from £664.9m to £648.3m, although operating profit climbed by 3.2% to £664m. The firm does not formally announce profit per equity partner (PEP).
Net cash rose from £36.1m to £87.4m, an increase of £142%. The accounts state that the firm now has no bank loans, down from £50m last year, while committed bank facilities are up from £150m to £200m.
The US was the firm’s fastest-growing region, with revenue up 21% from £391.1m to £473.3m. Asia saw turnover increase by 5% to £133.5m, with more modest growth in Middle East and North Africa (3.5%) and Europe (2.3%).
The US now accounts for 21% of all revenues, with Europe contributing 71%.
Total salary costs rose 11% from £954.5m to £1.058bn over the year, with the average number of fee earners rising from 3,703 to 3,901. The average number of members remained steady at 296, marginally up from 294 last year.
Profit and remuneration to key management personnel – the senior partner, managing partner and heads of global practice groups – was £25.8m, down 1.5% on the previous year.
The revenue growth of 6% is slightly behind the figures announced by the firm’s peers earlier this summer. Linklaters posted 11% revenue growth to reach £2.32bn, while Clifford Chance saw revenue rise by 9% to £2.4bn.
A&O Shearman also filed its first set of accounts as a merged firm earlier this month, with revenue at the combined firm up by 33% over the year to £2.86bn, up from legacy Allen & Overy’s £2.15bn.
