LB100 Second 25: The great leap upwards

LB100 Second 25: The great leap upwards

Analysing and then explaining the performance of the LB100’s 26-50 bracket is far from straightforward. The monumental disruption of the last year would seem to mandate a slip in standards or market activity at least somewhere, but across the board, leaders seem almost embarrassed by their near-universally buoyant performances.

Three of the top ten fastest-growing firms by revenue are in the 26-50 category, with expansive listed firm Knights the fastest in the entire LB100, after growing by 39%. Granted, Knights has bolted on a number of new offices to inflate the increase, but the acquisitiveness is representative of a flourishing market. Average revenue for the bracket increased by a respectable 4% to £154.7m, while average revenue per lawyer (RPL) remained flat at £273,000. Continue reading “LB100 Second 25: The great leap upwards”

LB100 Second 50: City and Boutique – Percentage play

LB100 Second 50: City and Boutique – Percentage play

The 21 London-based firms that sit in the second half of the LB100, many of which are specialist, focused players, are known for packing a punch that belies their size. These firms average 179 lawyers and 29 equity partners and have a combined turnover of more than £1bn. The group contains some of the strongest private wealth and family firms in the country (Boodle Hatfield, Farrer & Co, Forsters, Harbottle & Lewis, Payne Hicks Beach); the strongest disputes and tech firms (Bristows, Kingsley Napley, Stewarts, Wiggin); and the definitive boutique, pensions specialist Sacker & Partners.

Perhaps because many of these outfits were lean going into the pandemic, and perhaps also their service lines are tighter than firms elsewhere in the table, the changes overall have been less dramatic than elsewhere in the LB100. Average revenue is broadly in line, up 3% from £47m to £48.3m, with a revenue per lawyer (RPL) of £271,000. But in profitability terms, while these firms are clearly high-performing, the gains in the last financial year have been modest. Profit per lawyer (PPL) and profit per equity partner (PEP) are both up by just 2%, to £85,000 and £469,000 respectively. Continue reading “LB100 Second 50: City and Boutique – Percentage play”

LB100 Second 50: Regional View – Faster, higher, stronger

LB100 Second 50: Regional View – Faster, higher, stronger

The regional and smaller national firms that sit in the 51-100 bracket of the Legal Business 100 (LB100) have again proved their mettle. Twenty nine firms, with an average of 250 lawyers and 30 equity partners, have shone again.

Following last year’s 7% overall revenue growth, the group’s collective revenue was down to £1.41bn for 2020/21 – although there are two fewer firms in this category than last year. It is the average performance that tells the complete story: a striking revenue increase of 11% from £47m to £53m. This growth is also reflected in per lawyer metrics across the group. Revenue per lawyer (RPL) held steady at £192,000, but profit per lawyer (PPL) jumped 14% from £37,000 to £43,000. Average profit per equity partner (PEP), however, also moved up an impressive 8% to £352,000. And, while the performance of non-City firms in the second half of the LB100 is not nearly as strong on average metrics as their London counterparts (see part III), the gap is certainly narrowing and the firms in this group have far outperformed City and boutique firms on a year-on-year basis. Continue reading “LB100 Second 50: Regional View – Faster, higher, stronger”

Financials 2020/21: Linklaters maintains Magic Circle resilience with double-digit profit hike

Financials 2020/21: Linklaters maintains Magic Circle resilience with double-digit profit hike

Despite the pandemic, the 2020/21 financial year proved to be an improved outing for Linklaters as revenues inched up and profits saw a robust increase.

Turnover nudged upwards by 2% to reach £1.67bn – a modest increase, but an improvement on the marginal 0.7% growth seen last year. More notable was the firm’s rebounding profits: pre-tax profit stands at £815.3m, a 12% jump from last year, while profit per equity partner (PEP) grew by 10% to hit £1.773m. Continue reading “Financials 2020/21: Linklaters maintains Magic Circle resilience with double-digit profit hike”

Financial results 2020/21: Travers overcomes Covid blip as revenue spikes 15% and PEP surges 22%

Financial results 2020/21: Travers overcomes Covid blip as revenue spikes 15% and PEP surges 22%

The financial performance of Travers Smith has seen a dramatic double-digit bounce-back as turnover increased 15% to £185.7m and profit per equity partner soared 22% to £1.22m. The eye-catching PEP result came even as the number of full equity partners remained broadly flat at 57 compared with 56 last year.

The provisional results for the year ended 30 June 2021 announced today (9 August) will be a welcome return to form after last year’s disappointing showing when the firm suffered a 1% revenue drop to £160.9m, stymying a decade-long run of uninterrupted turnover growth. PEP also fell 20% to £1m, with the results being adversely affected by a reporting period that ran to the end of June, rather than April, giving the firm greater exposure to the pandemic downturn. Continue reading “Financial results 2020/21: Travers overcomes Covid blip as revenue spikes 15% and PEP surges 22%”

Financials 2020/21: HFW breaks £200m revenue barrier as profits soar by 30%

Financials 2020/21: HFW breaks £200m revenue barrier as profits soar by 30%

HFW has continued to perform resiliently in the face of the pandemic, today (9 August) posting a 3% rise in revenue to £200m and a striking 30% increase in profit per equity partner to £683,000.

There were healthy increases across the board: net profit shot up more than 26% to £59.7m, profit per lawyer was up by 30% to £123,000 and revenue per lawyer grew 6% to £413,000. Continue reading “Financials 2020/21: HFW breaks £200m revenue barrier as profits soar by 30%”