Linklaters ExComm bag £25m amid surge in revenue from US and AsiaPac, LLP accounts reveal

Linklaters ExComm bag £25m amid surge in revenue from US and AsiaPac, LLP accounts reveal

The 12 members of Linklaters’ executive committee and senior partner Charlie Jacobs saw a 17% pay increase to more than £25m last year, the firm’s LLP accounts show.

Published this week (4 November), the accounts also revealed double-digit revenue growth in the firm’s non-European offices in the year to April 2019. Asia Pacific turnover surged 15% to £226m, while its three American offices in Washington DC, New York and Sao Paulo billed £103m, 11% more than the previous year. Continue reading “Linklaters ExComm bag £25m amid surge in revenue from US and AsiaPac, LLP accounts reveal”

Hogan Lovells’ International business slims down headcount amid 8% revenue growth

Hogan Lovells’ International business slims down headcount amid 8% revenue growth

Profits at Hogan Lovells’ non-US business rose 11% to £281m last year as it slimmed down lawyer headcount by 37 in 2018, the firm’s LLP accounts have shown.

The accounts published today (2 October) show revenue from the firm’s offices in 21 countries outside the States grew 8% to £860m in the year to December 2018, up from £798m the previous year. Continue reading “Hogan Lovells’ International business slims down headcount amid 8% revenue growth”

LB100 drives income up 9% to £26.35bn but fears mount of a chaotic no-deal as Brexit fallout spreads

LB100 drives income up 9% to £26.35bn but fears mount of a chaotic no-deal as Brexit fallout spreads

With daily headlines reminding the City of the Brexit-induced crisis engulfing the UK, the Legal Business 100 (LB100) has shrugged off the pervasive uncertainty to post another year of robust growth.

Amid the increasing probability of the UK facing a wrenching ‘no-deal’ exit from the EU on the looming 31 October deadline, the LB100 results show the UK’s leading law firms driving collective revenues up 9% to £26.35bn. Continue reading “LB100 drives income up 9% to £26.35bn but fears mount of a chaotic no-deal as Brexit fallout spreads”

LB100 Overview: Apocalypse soon?

LB100 Overview: Apocalypse soon?

As Legal Business was unpacking the 2018/19 financial results of the UK’s top 100 law firms, the Office for National Statistics reported that Britain’s economy had shrunk for the first time since 2012. The 0.2% fall in output in the second quarter of 2019 was the latest in a series of ominous signs for a nation that appears, at the time of writing, on course for a cliff-edge exit from the European Union amid a chaotic political landscape and falling currency.

As Legal Business went to press, a row was raging over government moves to prorogue Parliament in the run-up to the 31 October deadline to exit the EU, threatening constitutional wrangles and a no-deal Brexit. A nation famed for exporting democracy, its strong institutions and a stable business environment is looking more Banana Republic than Britannia resurgent by the day. Continue reading “LB100 Overview: Apocalypse soon?”

LB100 Second 25: A brooding gloom in sunshine

LB100 Second 25: A brooding gloom in sunshine

On paper, an 11% jump in average revenue to £135.5m for the second 25 looks like a great leap forward from last year’s 5% increase to £122.6m, and this rate of growth compares favourably to the top quartile’s 9% hike to £830.7m. But as usual the figure must be taken with a pinch of salt.

Tempering excitement that the group is outstripping the top 25, Womble Bond Dickinson (WBD)’s transatlantic merger has inflated revenue and catapulted it into the top tier, squeezing out last year’s top-25 entrant Fieldfisher. Swapping WBD for Fieldfisher means that around £140m is artificially added to the £3.39bn total revenue of the group. Without it, average turnover would be around £130m – a more muted 6% increase. Continue reading “LB100 Second 25: A brooding gloom in sunshine”

LB100 Second 50 – City and Boutique: The adventurers and the settlers

LB100 Second 50 – City and Boutique: The adventurers and the settlers

While the UK lurches through a Brexit drama entirely of its own making, mid-market and boutique London-based firms have focused on diversifying their services or using their unique offerings to differentiate themselves from the pack.

The combined turnover for the 18 City firms that sit in the second 50 of this year’s Legal Business 100 (LB100) is £839.7m, an increase of 8%. Average revenue increased 15%, reaching £46.7m. But, inevitably, the top-line growth of the firms in this group is distorted by some sizeable merger activity. Two of those firms have seen large jumps in revenue and headcount: Gordon Dadds, which after acquiring a large chunk of Ince & Co in 2018 and following its initial public offering (IPO) in 2017 – has seen turnover jump 68% from £31.2m to £52.6m under its new Ince branding (see case study). Bircham Dyson Bell, which merged with Reading stalwart Pitmans in December 2018, saw turnover climb from £33.7m to £52m as a result – a spike of 54%. With that level of artificial top-line growth, profit levels are hard to sustain. A 4% growth in the number of equity partners across the group has contributed to average profit per equity partner (PEP) only moving up 3% from £416,000 to £427,000. Continue reading “LB100 Second 50 – City and Boutique: The adventurers and the settlers”

LB100 drives income up 9% to £26.35bn but fears mount of a chaotic no-deal as Brexit fallout spreads

LB100 drives income up 9% to £26.35bn but fears mount of a chaotic no-deal as Brexit fallout spreads

With daily headlines reminding the City of the Brexit-induced crisis engulfing the UK, the Legal Business 100 (LB100) has shrugged off the pervasive uncertainty to post another year of robust growth.

Amid the increasing probability of the UK facing a wrenching ‘no-deal’ exit from the EU on the looming 31 October deadline, the LB100 results show the UK’s leading law firms driving collective revenues up 9% to £26.35bn. Continue reading “LB100 drives income up 9% to £26.35bn but fears mount of a chaotic no-deal as Brexit fallout spreads”

LB100 Second 50 – Regional focus: Crawling on a razor

LB100 Second 50 – Regional focus: Crawling on a razor

Smaller regional and national firms have gained ground on their London rivals in this year’s Legal Business 100 (LB100) after years of the productivity gap widening in favour of the City. And, as some of the strongest performers from the 32 regional firms in the 51-100 bracket have shown, a big part of the shift has come from a growing trend of partnering up with law’s global elite to effectively provide northshoring outposts for blue-chip clients.

Following a muted period and just 1% growth last year, the group’s collective revenue rose a solid 7% to £1.36bn in 2018/19, for an average revenue of £42.4m. The productivity per capita at regional firms, traditionally weaker than London counterparts, also grew where City firms lagged this year, closing a gap that had been steadily widening. Revenue per lawyer climbed 9% to £197,000, compared to an almost flat £267,000 in London. Profit per lawyer stayed flat at £38,000, against £78,000 in the City, which was down 6%. Profit per equity partner (PEP), however, slid 5% to £339,000. Continue reading “LB100 Second 50 – Regional focus: Crawling on a razor”