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Half-year financial results point to relative revival at leading UK firms

Cyclical departments increasing contribution to bottom line

As an analytical tool half-year figures may be superficial but as a litmus test of performance they show, on the basis of the figures released by LB100 firms so far, that 2013/14 will be a much improved and more benign year.

Firms including Allen & Overy (A&O), Clyde & Co and Simmons & Simmons have disclosed increases in revenue, with signs that cyclical departments such as finance and real estate are beginning to increase their contribution to the bottom line again.

Continue reading “Half-year financial results point to relative revival at leading UK firms”

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The Last Word: A year in review

Aside from bad knitwear and excessive alcohol consumption, Christmas is a time for reflection as well as looking ahead. With this in mind, we asked some senior law firm figures for their thoughts. Rose-tinted spectacles are optional.

Striking the balance

‘Much of our focus this year has inevitably been on integration and on being instructed because of capabilities created as a result of our merger. We have done very well in both areas and the sheer number of so-called synergy mandates has been a real highlight. Against an improving but still uncertain economic backdrop in 2013, our financial performance has been satisfactory. Continue reading “The Last Word: A year in review”

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Consolidating pharma giants to drive global M&A as advisers secure major deals from Novartis and Shire

The pharmaceutical industry is the driving force behind a number of recent high-value M&A transactions as drugs companies look for new ways to consolidate, and address patent expiration in a trend forecast to continue.

In November, Novartis sold off part of its operation, its blood transfusion diagnostics unit, to Barcelona-based Grifols for an estimated $1.68bn, as the Swiss pharma giant conducts a wholesale review of its business.

Continue reading “Consolidating pharma giants to drive global M&A as advisers secure major deals from Novartis and Shire”

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Former Times head of legal Alastair Brett to face hearing for misleading court

The former head of legal for The Times newspaper, Alastair Brett, will appear before the Solicitors Disciplinary Tribunal (SDT) tomorrow (5 December) to face allegations that he allowed a court to be misled over the unveiling of anonymous Nightjack police blogger and Lancashire detective, Richard Horton in 2009.

Last year the Leveson inquiry into press standards heard from former Macfarlanes litigator Brett that, during an injunction brought by Horton to prevent The Times from revealing his identity, high court judge Mr Justice Eady was not informed that Horton’s identity had originally been discovered as a result of hacking his email. Continue reading “Former Times head of legal Alastair Brett to face hearing for misleading court”

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US bonus season: Cravath kicks off by holding bonuses at 2012 levels

The US bonus season has kick-started with elite New York firm Cravath, Swaine & Moore setting the tone by revealing it will pay its associates the same end-of-year bonuses as 2012, ranging from $10,000 to $60,000.

Lawyers who joined Cravath in September this year will receive a $10,000 bonus on Friday 20 December, identical to last year’s sum. First-year associates will also receive $10,000 while the most senior associates will receive $60,000. Continue reading “US bonus season: Cravath kicks off by holding bonuses at 2012 levels”

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Updated: Clifford Chance in line for windfall payment after PwC reaches European Lehman settlement

Clifford Chance is among the creditors of the European operations of Lehman Brothers set to receive a windfall after administrator PwC announced a total payout of $7.8bn, the latest in a series of payments made to creditors of the former US investment bank as it nears the end of its mammoth winding-up process.

According to one partner at the Magic Circle firm, the payment could be as much as £10m and a spokesperson for PwC said creditors are likely to receive payment before the end of the calendar year.

Lehman Brothers filed for Chapter 11 bankruptcy in September 2008, listing $639bn of assets against $613bn of outstanding debt but within days creditors filed claims of $1.2trn, double its assets.

Continue reading “Updated: Clifford Chance in line for windfall payment after PwC reaches European Lehman settlement”

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Hefty fines: Cleary, Slaughters and CC advise on banks’ €1.7bn rate-rigging settlement

A collection of some of Europe’s strongest antitrust practices have been advising some of the world’s largest global banks as they today (4 December) agreed fines with the European Commission for their participation in illegal cartels to rig interest rates.

Cleary Gottlieb Steen & Hamilton, Slaughter and May and Clifford Chance were among the law firms advising a total of eight international financial institutions – including the Royal Bank of Scotland, Deutsche Bank, JPMorgan, and Citigroup – who have been fined a total of €1.7bn for their roles in the cartels.

Continue reading “Hefty fines: Cleary, Slaughters and CC advise on banks’ €1.7bn rate-rigging settlement”

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DISSENT: The battle for talent and other phoney wars

A false ‘war for talent’ has seen law firms create their own staff shortages, argue Laura Empson and Louise Ashley.

Since McKinsey & Co first coined the term in 1997, the ‘war for talent’ has been the focus of a stream of conferences, media articles and consulting assignments. It has spawned a new human resources specialism – talent management – and with that has come concepts such as ‘competency frameworks’ and ‘succession planning’.

One of the most hotly fought fronts in the war for talent is graduate recruitment. Professional service firms, including law firms, accountancy practices, banks and consultancies, pride themselves on battling with other firms, competing aggressively for a very limited number of ‘the brightest and the best’ graduates. As one banker told us: ‘All the banks are in competition, gunning for that small pool of talent.’ Continue reading “DISSENT: The battle for talent and other phoney wars”

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Hunting titans – the disputes outlook as watchdogs and claimants target banking giants

As banks remain in the crosshairs of regulators and claimants, Legal Business teamed up with Stephenson Harwood to seek the views of the in-house banking community on attitudes to disputes and risk.

If you needed confirmation of just how challenging the litigation climate is for many of the world’s banks, then JPMorgan Chase’s results for the third quarter provided it, in all their billion-dollar detail. Announcing a $400m loss for Q3 in October, the bank revealed that it had set aside $23bn for litigation costs arising from a series of regulatory investigations, resulting litigation and economic crisis-related suits.

Continue reading “Hunting titans – the disputes outlook as watchdogs and claimants target banking giants”

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H1 2013/14: Ashurst sees combined half year figures rise by 6%

Newly-merged Ashurst has joined the growing numbers of top 50 LB100 firms to report an increase in turnover during the first half (H1) of 2013/14, with its combined revenues up by 5.8% to £298m, thanks to improved prevailing economic conditions and an uptick in transactional work.

The 1,800-lawyer firm, which achieved full financial integration with big six Australian firm Blake Dawson in September this year, has disclosed combined revenues for the two firms during the period 1 May to 31 October 2013. Its 5.8% increase is set against a pre-merger combined revenue of £281.7m this time last year. Continue reading “H1 2013/14: Ashurst sees combined half year figures rise by 6%”

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Legal fees: QualitySolicitors to abandon hourly rates in favour of fixed fees

QualitySolicitors (QS) has unveiled plans to abandon the hourly rate across its network of firms, offering fixed fees for all legal services including litigation.

The group, which has around 120 members across 200 locations, is to roll out the next phase of a pilot scheme which will see 15 of its firms stop charging by the hour, with the intention to roll out the model across the network by early 2014. Continue reading “Legal fees: QualitySolicitors to abandon hourly rates in favour of fixed fees”

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H1 2013/14: Bird & Bird reveals revenue increase of 5%

Bird & Bird today (3 December) attributed a 5% increase in its half year (H1) 2013/14 revenues to the strengthening of its international offering, although the firm declined to disclose its underlying turnover figure.

The 960-lawyer firm, which operates its accounts in euros, estimated growth of 5% in euros, which it claims equates overall to 10% growth in sterling when currency fluctuations across H1 are taken into account.

Highlights in H1 include office openings in Dubai and Denmark, as well as lateral hires across corporate, intellectual property and media. Continue reading “H1 2013/14: Bird & Bird reveals revenue increase of 5%”

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H1 2013/14: Taylor Wessing reveals UK revenue increase of 10%

Taylor Wessing has joined a band of leading City firms to have turned out a double digit increase in revenue for the 2013/14 half year (H1), unveiling a 10% increase in its UK turnover.

The 960-lawyer firm has credited extensive investment, including international expansion and a series of lateral hires for the uptick in its performance, which internationally saw its H1 revenues increase by 9%. Continue reading “H1 2013/14: Taylor Wessing reveals UK revenue increase of 10%”

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Ashurst’s Lloyd set to join Allen & Overy subject to partner vote

Ashurst’s high profile global head of corporate Stephen Lloyd appears set to join Allen & Overy (A&O) after resigning from the newly-merged firm in November.

While Lloyd’s move is still subject to a vote by the Magic Circle firm’s partnership, one corporate partner at A&O told Legal Business: ‘It’s not final, but it’s very likely. We are pretty excited about him joining. He is a really good operational lawyer and a good cultural fit.’ Continue reading “Ashurst’s Lloyd set to join Allen & Overy subject to partner vote”

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Guest post: The rise and rise of Slater and Gordon – a tale of the ABS era

If anyone wanted to see what alternative business structures (ABSs) can achieve, they need look no further than Slater and Gordon (S&G).

If you take into account the sum announced as going towards buying Simpson Millar – a deal currently on ice – S&G has committed around £150m towards its UK expansion since first announcing the acquisition of Russell Jones & Walker in January 2012. Could it have achieved this without being a listed company? I’m no financial expert, but I doubt it; raising money through share issues has been key, although debt levels are up sharply as well. Continue reading “Guest post: The rise and rise of Slater and Gordon – a tale of the ABS era”

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Leadership: Dick Tyler ‘ready for a change’ as CMS elects Penelope Warne as senior partner

CMS Cameron McKenna has elected its first-ever female senior partner, as UK managing director and head of energy Penelope Warne takes over the role from longstanding management figure and corporate finance partner Dick Tyler, who has said he is ‘ready for a change’.

Warne (pictured), who joined the firm in 1993 and set up the firm’s offices in Aberdeen, Edinburgh, Rio de Janeiro and Dubai, will officially take up the post in May 2014 for a four-year term. Continue reading “Leadership: Dick Tyler ‘ready for a change’ as CMS elects Penelope Warne as senior partner”

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Latin America: DAC merges with Colombian alliance partner De la Torre & Monroy

DAC Beachcroft has expanded its Latin American presence via a merger with Colombian alliance partner De la Torre & Monroy Abogados Asociados, which began trading as DAC Beachcroft Colombia yesterday (1 December).

The 1000-lawyer top 25 UK firm, which formally allied with the six-lawyer Bogata insurance firm in March this year ahead of the liberalisation of the Colombian insurance market, agreed the tie-up after partners voted in favour on 22 November. Continue reading “Latin America: DAC merges with Colombian alliance partner De la Torre & Monroy”

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H1 2013/14: BLP reveals a 6% increase in turnover

By any estimation 2012/13 was Berwin Leighton Paisner’s (BLP’s) annus horribilis but the top 20 firm is showing modest signs of recovery with today’s (2 December) announcement that its revenues are up by 6% on this time last year.

Partners at the 786-lawyer firm have for some time privately indicated that its 2013/14 revenues are showing signs of improvement and the 6% rise, while starting from a low base given its 5% decline from £246m to £233m last year, is confirmation that their quiet confidence is, to an extent, justified. Continue reading “H1 2013/14: BLP reveals a 6% increase in turnover”

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Merit driven pay – Slaughter and May introduces discretionary associate bonus

Building on its decision earlier this year to introduce an element of merit to its associate pay, Slaughter and May has overhauled its associate bonus, moving away from a ‘blunt instrument’ flat rate bonus of 5% to a performance and seniority related uplift.

The overhaul – which was unveiled by the Magic Circle firm today (2 December) and follows its decision in January to create ‘good’ and ‘exceptional’ salary bands for associates from 4.5 years post-qualification experience (PQE) and upwards – will see associates paid up to a 12% bonus based on both their PQE level and performance. Continue reading “Merit driven pay – Slaughter and May introduces discretionary associate bonus”

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Guest post: The United States of Innovation – viewed from Wall Street, it could be a whole lot better

The other night I was fortunate enough to be invited to attend the FT’s Innovative Lawyers 2013 US awards ceremony. (The report was published here the next day in the paper, and you can download a PDF.)

Since this is now an annual event – this year marks the fourth time they’ve done it in the US – it’s an occasion to step back and see how the conversation has evolved. Here’s the telling final paragraph of last year’s introductory piece, following a lengthy series of anecdotes from managing partners about ‘buggy whips’, ‘new market dynamics’, ‘requiring behaviour to change’, ‘the wow factor’, and ‘adapting to the moving cheese’:

All the chairmen of the top firms talk about change and the need to ‘not fight the last war’. And yet at the same time they cannot, they say, see their firms being all that different in five years’ time.

Continue reading “Guest post: The United States of Innovation – viewed from Wall Street, it could be a whole lot better”