Resilient HSF closes in on £1bn revenue but profits fall with increased operating costs

Resilient HSF closes in on £1bn revenue but profits fall with increased operating costs

Herbert Smith Freehills (HSF) has become the latest international firm to post resilient turnover growth in the face of the Covid-19 crisis but increased operating costs and a drop in productivity saw profits tumble in 2019/20.

Revenues at the Anglo-Australian giant increased 2.5% to £989.9m, up from £966m last year when revenues grew 4%. However, profits saw a significant decline, falling almost 8% to £283.2m while profit per equity partner dropped almost 10% to £857,000 from £949,000 last year.  Continue reading “Resilient HSF closes in on £1bn revenue but profits fall with increased operating costs”

‘Stable and consolidated’: Clydes posts steady revenue growth but profit hit after year of investment

‘Stable and consolidated’: Clydes posts steady revenue growth but profit hit after year of investment

Clyde & Co has notched up its 22nd consecutive year of revenue growth, the firm’s latest financial results show, albeit with a slower turnover increase than the previous financial year and a modest dip in profit following internal investments. 

Firmwide revenues were up 3% from £611m to £627m in 2019/20, a decrease on last year’s pacier 11% growth rate. Despite the reliable revenue growth, profit at the firm fell 5% to £143m ‘due to increased investment,’ while profit per equity partner (PEP) likewise dipped 4% to £665,000  Continue reading “‘Stable and consolidated’: Clydes posts steady revenue growth but profit hit after year of investment”

‘On the front foot’ – RPC upbeat after holding steady amid year of change

‘On the front foot’ –  RPC upbeat after holding steady amid year of change

RPC posted muted revenue growth for 2019/20 following changes to the firms practice lines, its latest financial results reveal, while profit per equity partner (PEP) saw a slight dip. 

Turnover at the insurance and litigation specialist rose 1% to £110.1m, with the firm’s commercial & financial markets disputes, insurance, and technology & media practices among the primary drivers of growth as the financial year closed. PEP, meanwhile, fell 4% to £424,000, albeit after a striking 27% rise last year to £442,000 off the back of a contraction in the firm’s equity partnership.  Continue reading “‘On the front foot’ – RPC upbeat after holding steady amid year of change”

HFW bounces back with profit and turnover growth in a strong 2019/20

HFW bounces back with profit and turnover growth in a strong 2019/20

HFW produced a strong showing over the last financial year, its latest financial results reveal, with profits rebounding and revenues up after a muted performance in 2018/19.

Profits were up to £47.3m this year after dipping 9% to £43.3m the previous year, while profit per equity partner recovered 11% to £526,000 following a 11% deficit in the 2018/19 results. Revenue, meanwhile, also grew: up 9% to £195.2m, while revenue per lawyer rose 7% to £389,000.  Continue reading “HFW bounces back with profit and turnover growth in a strong 2019/20”

‘Strong foundation’: Another year of steady growth as Simmons prepares for challenges ahead 

‘Strong foundation’: Another year of steady growth as Simmons prepares for challenges ahead 

Simmons & Simmons has recorded another year of steady growth, its latest financial results reveal, with all key financial metrics up as the firm readies itself for more difficult times ahead.

The firm’s financial results published today (24 July) show firmwide revenue rose 4% to £390m, a slow rate on last year’s 6% increase and a considerable drop from the firm’s 12% hike in 2018. Meanwhile, the firm’s overall profit stood at £126m, up 6% on last year and profit per equity partner growth surpassed last year’s figure, hiking 7% to £756,000. Continue reading “‘Strong foundation’: Another year of steady growth as Simmons prepares for challenges ahead “

Freshfields emerges from year of challenges and investment with 3% revenue increase and flat profit

Freshfields emerges from year of challenges and investment with 3% revenue increase and flat profit

After what has been an eventful year notwithstanding the havoc wrought by the coronavirus crisis, Freshfields Bruckhaus Deringer has closed out the Magic Circle reporting season by announcing a 3% revenue increase to £1.52bn and flat net profit at £685m.

Profit per equity partner (PEP) stood at £1.82m, slightly down on last year’s £1.839m. Continue reading “Freshfields emerges from year of challenges and investment with 3% revenue increase and flat profit”

‘Doing business the right way’ sees PEP fall significantly at Pinsents as turnover growth slows

‘Doing business the right way’ sees PEP fall significantly at Pinsents as turnover growth slows

Profit per equity partner (PEP) endured a 12% drop at Pinsent Masons over the last financial year as the firm continues to hold back funds from partner profits to prioritise internal investment.

PEP now stands at £546,000 at the firm compared to £620,000 last year, when PEP was clipped by 5% as Pinsents held back funds in the region of £6m for the purpose of investment in the business. Continue reading “‘Doing business the right way’ sees PEP fall significantly at Pinsents as turnover growth slows”

CC becomes third City leader to achieve post-pandemic growth as revenues climb £110m

CC becomes third City leader to achieve post-pandemic growth as revenues climb £110m

With the coronavirus pandemic still wreaking havoc across many industry sectors, London’s legal elite has continued to buck the dire wider market with the third Magic Circle firm announcing revenue growth.

Results announced today (21 July) from Clifford Chance (CC), show the London outfit confirming robust growth in the face of the most challenging trading environment since the depths of the banking crisis. The City leader said that revenues for the 2019/20 period were up 6% to £1.803bn, up £110m on the previous year, while profits per equity partner increased 5% to £1.69m. Partnership profit for the year totalled £666m, an annual increase of 5%. Continue reading “CC becomes third City leader to achieve post-pandemic growth as revenues climb £110m”

Linklaters edges revenue up despite global slump as City results start flowing in

Linklaters edges revenue up despite global slump as City results start flowing in

Traditionally, like the proverbial London transit, you wait ages for one set of Magic Circle results and then they start coming in like buses. Hot on the heels of Allen & Overy (A&O)’s financial results, City peer Linklaters has just unveiled its 2019/20 numbers, with a similarly resilient showing in the face of the coronavirus pandemic.

Linklaters today (16 July) confirmed that its revenues for the period to the end of April were £1.64bn, up a marginal 0.7% on the previous year. Pre-tax profit stood at £726.9m, with profit per equity partner ebbing 5.1% down at £1.612m. Continue reading “Linklaters edges revenue up despite global slump as City results start flowing in”

A&O shrugs off lockdown to hike revenues 4% to £1.69bn in first post-pandemic results from UK law elite

A&O shrugs off lockdown to hike revenues 4% to £1.69bn in first post-pandemic results from UK law elite

There has been much speculation about the impact of the coronavirus pandemic on the profession but the first set of results from a leading law firm has confirmed the gist of months of market chatter: they’re doing fine.

Allen & Overy (A&O)’s financial results for the 2019/20 year show that the City giant managed the remarkable feat of driving revenues up 4% to £1.69bn, despite nearly two months of its crucial year-end period catching the full brunt of the Covid-19 lockdown. Continue reading “A&O shrugs off lockdown to hike revenues 4% to £1.69bn in first post-pandemic results from UK law elite”