Page 230 – Legal Business

4 July 2018

Top-line growth no longer a priority as profit jumps 12% at HSF

Herbert Smith Freehills (HSF) chief executive Mark Rigotti says the days of focusing on revenue growth ‘are gone’ after the firm revealed today (4 July) less than one percent turnover growth for 2017/18 against a 12% increase in profit per equity partner (PEP).

Revenue at HSF during what it described as a period of encouraging growth was £926.8m, barely up on last year’s £920.5m. HSF’s profits, meanwhile, rose 8% to £277.2m and PEP was up from £760,000 to £852,000. The firm’s financial figures are not currency-adjusted but foreign exchange impacts were described as marginal. Continue reading “Top-line growth no longer a priority as profit jumps 12% at HSF”

3 July 2018

Deal Watch: Rich pickings for Travers and Ashurst as US giants get busy on the continent

It was a busy week for UK and US deal counsel as Travers Smith and Ashurst acted on multibillion-pound deals north of the channel and White & Case and Ropes & Gray landed key mandates in continental Europe.

Again acting well above its traditional mid-market territory, Travers advised IT company Micro Focus on the $2.5bn sale of open source software business SUSE to EQT Partners. Continue reading “Deal Watch: Rich pickings for Travers and Ashurst as US giants get busy on the continent”

3 July 2018

Veteran Pernod Ricard GC FitzSimons departs after 16 years at the helm

French wines and spirits company Pernod Ricard announced yesterday (2 July) it had lost a veteran of the in-house legal community, with group general counsel (GC) Ian FitzSimons departing after a 16-year stint.

In a statement, Pernod Ricard said FitzSimons ‘has decided to devote himself to new projects outside the group’ and thanked him ‘for his contribution, notably as a key actor in the major acquisitions which have transformed the group.’ Continue reading “Veteran Pernod Ricard GC FitzSimons departs after 16 years at the helm”

3 July 2018

Barclays presses counsel for radical shake-up by 2021 as it unveils final panel

Barclays is intent on pushing dozens of major law firms to adopt a radical overhaul in working arrangements in time for its long-planned move away from a formal panel by 2021.

The global banking giant confirmed on Monday (2 July) that it had completed its final global panel review, further reducing its advisers from 140 to just under 100 before it phases out a conventional legal panel altogether in three years. Continue reading “Barclays presses counsel for radical shake-up by 2021 as it unveils final panel”

3 July 2018

Ashurst taps Mayer Brown’s City office in disputes drive as White & Case adds Macfarlanes rising deal star Jones

The City lateral market has kicked off after an uncharacteristic hiatus in recent weeks, seeing Ashurst recruit disputes partner Tom Duncan from Mayer Brown as Macfarlanes loses private equity rising star Emmie Jones to White & Case’s relentless hiring spree.

Macfarlanes-bred Jones, who featured in Legal Business’ analysis on the female City private equity players to watch in the mid-tier, was made up to partner in 2013. She has joined White & Case’s global M&A and private equity industry group as the firm sallies forth with its 2020 strategy, which includes going ‘toe-to-toe’ with the Magic Circle in London, led by erstwhile London executive partner Oliver Brettle. Continue reading “Ashurst taps Mayer Brown’s City office in disputes drive as White & Case adds Macfarlanes rising deal star Jones”

3 July 2018

A relative result: CC hikes partner profits to £1.6m as first Magic Circle player unveils 2018 numbers

For months lawyers have been talking of unexpectedly robust trading conditions but the first clear indication from the City elite come today (3 July), as Clifford Chance (CC) announces a 5% income hike for 2017/18, while partner profits surged to £1.6m.

The first set of results from a Magic Circle outfit show revenue up from £1.54bn to £1.623bn, while the firm’s overall profits pool was up just over 13% to £626m. The number of equity partners over the year dipped from 403 to 392, driving profits per equity partner up nearly 16% from £1.375m to £1.596m. The number of lawyers at the firm also dipped to 2,905 from 2,999 last year. Continue reading “A relative result: CC hikes partner profits to £1.6m as first Magic Circle player unveils 2018 numbers”

29 June 2018

Slater and Gordon fined £80,000 for Quindell disclosure breach involving more than 7,000 files

In another chapter to the ongoing story of Slater and Gordon’s (S&G) troubled Quindell buyout, the firm has been hit with an £80,000 fine for disclosing confidential client information.

The Solicitors Regulation Authority (SRA) today (29 June) imposed a £40,000 financial penalty on both S&G and Quindell Legal Services, now Slater Gordon Solutions, for disclosing un-redacted confidential information and documents from 7,087 client matter files to other firms. The pair were also ordered to pay the SRA’s costs of £26,000. Continue reading “Slater and Gordon fined £80,000 for Quindell disclosure breach involving more than 7,000 files”

29 June 2018

London rules again as Latham elects deal finance guru Trobman as new chief

Latham & Watkins is sticking to London for its new chair and managing partner, electing deal finance heavyweight Richard Trobman to the role.

Previously the firm’s co-vice chair, Trobman will step into the role immediately, bringing to an end a three-month long search for a successor to Bill Voge, who resigned from the firm in March amid allegations of misconduct involving communications with a woman outside the firm. Continue reading “London rules again as Latham elects deal finance guru Trobman as new chief”

28 June 2018

Baker McKenzie makes up six in London amid scaled back global promotion round as the firm claims largest female partnership

Baker McKenzie has promoted six in the City as part of a scaled down global promotion round which saw 68 lawyers minted, 15% fewer than last year’s 80.

Together with 53 laterals during this financial year, the promotions mean partner numbers at the firm hit 1,600. Continue reading “Baker McKenzie makes up six in London amid scaled back global promotion round as the firm claims largest female partnership”

28 June 2018

Financials 2017/18: Revenue ticks over for Stephenson Harwood but profits dip again

Stephenson Harwood has recorded a 6% rise in revenues to £189m but suffered a consecutive year of falling profit per equity partner (PEP), down 6% to £664,000.

The results are less polarised than last year, where revenue grew 11% but PEP fell by 9%. Continue reading “Financials 2017/18: Revenue ticks over for Stephenson Harwood but profits dip again”

28 June 2018

More growth for global traveller Bird & Bird as post-float Gordon Dadds hikes income 25%

Another year of international expansion has seen the 27^th consecutive year of revenue growth for Bird & Bird as the firm posted a 6% rise to €382.3m and an 11% hike in sterling terms to £337m, as Gordon Dadds passed the £30m mark in its first results since its public listing.

In what chief executive David Kerr described as ‘strong growth’, Bird & Bird increased profit per equity partner (PEP) by 10% to £550,000 with the number of equity partners growing from 105 to 113. Continue reading “More growth for global traveller Bird & Bird as post-float Gordon Dadds hikes income 25%”

28 June 2018

Linklaters and A&O join Magic Circle peers in associate salary race to attract US talent

Linklaters and Allen & Overy (A&O) have joined Magic Circle peers Freshfields Bruckhaus Deringer and Clifford Chance to hike associate salaries in the US as competition to recruit top-flight lawyers heats up.

A&O said today (28 June) it would pay US associates a starting salary of $190,000 rising to $340,000 for associates in their eight year. The salary rises to $350,000 for lawyers in their ninth year and for senior associates. Continue reading “Linklaters and A&O join Magic Circle peers in associate salary race to attract US talent”

27 June 2018

Comment: BCLP offers a (slightly) better post-merger pitch than expected

It would take a generous observer of Berwin Leighton Paisner (BLP) to claim the once sure-footed outfit had managed anything better than an indifferent run in the years preceding its union with Bryan Cave. Having dazzled through the 2000s – a period in which the firm seemed to have single-handedly revived the unfashionable notion of a City mid-tier – the last five years have been a stark contrast. Volatile financial performance, a disastrous run of partner recruitment and tension over its property-heavy direction – all in, it was unclear where the firm was going.

As such, confirmation earlier this year that BLP was uniting with a solid US operator, but one whose brand had limited potency in Europe, did not quicken the pulse. Continue reading “Comment: BCLP offers a (slightly) better post-merger pitch than expected”

27 June 2018

Three new appointments to Supreme Court but still no commercial judges

While the UK Supreme Court announced today (27 June) that Lady Justice Arden, Lord Justice Kitchin and Lord Justice Sales will be appointed later this year, a lack of commercial expertise at the nation’s highest appeal court has drawn criticism.

The trio’s elevation comes after former deputy president Lord Mance retired this month, with Lord Hughes and Lord Sumption set to retire in August and December respectively. Continue reading “Three new appointments to Supreme Court but still no commercial judges”

26 June 2018

Knights shareholders to get £20m windfall after float valued at over £100m

Staffordshire-based Knights is set to raise £50m from its initial public offering (IPO) on AIM this week (29 June), with the firm’s four selling shareholders to split £20m in proceeds.

The float – which would be the largest legal IPO to date – is also expected to give Knights a market capitalisation of £103.5m, in line with the firm’s forecast from earlier in the month. Continue reading “Knights shareholders to get £20m windfall after float valued at over £100m”

26 June 2018

Financials 2017/18: Ashurst posts 4% revenue uptick and second year of double-digit PEP growth

In what management has billed as ‘a strong performance globally’, Ashurst has reported a modest 4% uptick in revenue for 2017/18 while the firm sustained the 11% growth in profit per equity partner (PEP) achieved last year.

The firm’s revenue for the last financial year was £564m, up from £541m, while PEP stood at £743,000 compared with £672,000 in 2017. Continue reading “Financials 2017/18: Ashurst posts 4% revenue uptick and second year of double-digit PEP growth”

25 June 2018

Revolving Doors: Baker Botts takes Kirkland capital markets partner in Houston as Cooley adds tax partner and DLA makes litigation play in LA

City laterals stayed quiet last week continuing a recent hiatus while the US was the centre of attention internationally with DLA Piper, Baker Botts and Cooley all making hires across the Atlantic.

US laterals defined last week’s international recruitment round, with Baker Botts leading the way with a strategic hire from American powerhouse Kirkland & Ellis. Capital markets partner Justin Hoffman joined the firm in its Houston office, after spending two years as a partner at Kirkland. Continue reading “Revolving Doors: Baker Botts takes Kirkland capital markets partner in Houston as Cooley adds tax partner and DLA makes litigation play in LA”

25 June 2018

Expansive Simmons shrugs off sluggish post-Lehman form to drive income up 12% to £354m

Simmons & Simmons has posted one of its strongest results since the banking crisis, with the City firm announcing a 12% hike in revenues to hit £354m. After a year of sustained recruitment and foreign expansion, the 280-partner firm also saw net profits surge 19% to £110m and profit per equity partner (PEP) up 8% to £686,000.

The headline 12% growth rate comes after a 7% increase for 2016/17 and looks set to be one of the most robust showings in its weight class this year even against the backdrop of active markets. In common with many large City firms over the last decade, Simmons has struggled to sustain strong growth. Continue reading “Expansive Simmons shrugs off sluggish post-Lehman form to drive income up 12% to £354m”

24 June 2018

‘Continued growth an excellent result’: year of investment brings slowdown for Pinsents

Pinsent Masons has recorded slower revenue growth for the 2017/18 financial year, with turnover increasing by 6% to £449.8m compared to the 11% growth the firm recorded last year.

Profit per equity partner (PEP) increased by 4% to £653,000, a significant slowdown from the 14% growth registered last year, however the increase comes despite the addition of six equity partners at the firm since July 2017. Continue reading “‘Continued growth an excellent result’: year of investment brings slowdown for Pinsents”