Linklaters leads Magic Circle pack amid solid 2018/19 trading but uncertainty looms over the City elite

Linklaters leads Magic Circle pack amid solid 2018/19 trading but uncertainty looms over the City elite

Lawyers are a pessimistic bunch by nature and, with the big four Magic Circle firms posting another year of solid but unspectacular revenue and profit per equity partner (PEP) growth, the consensus view is that 2018/19 could have been a lot worse.

Amid a wider slowing of the UK economy and Europe’s deal markets in the face of Brexit and a range of cross-border headwinds, the City’s big four international players posted another year of the moderate results that have defined their post-banking-crisis form. Continue reading “Linklaters leads Magic Circle pack amid solid 2018/19 trading but uncertainty looms over the City elite”

Global 100 overview: Escape velocity as the world’s largest firms pick up momentum

Global 100 overview: Escape velocity as the world’s largest firms pick up momentum

Compared to the dramatic events that have defined each of the three previous years, 2018/19 was relatively benign for the world’s top 100 law firms. True, the world has been dealing with increasing protectionism, US-China trade wars and the endless saga of the UK-EU divorce. But none of these headwinds were a shock for an industry that three years ago was reeling from the Brexit referendum in the UK and in 2017 from the start of Donald Trump’s presidency in the US.

Last year’s Global 100 report spoke of two milestones, with the global legal elite smashing the $100bn collective revenue barrier and entering the age of the $3bn law firm. Those looking for events of a comparable magnitude this time around will be disappointed. But if the legal industry appeared resilient in summer 2017 and flourishing 12 months later, this year it is nothing short of booming. Collectively, these are the strongest results since the pain of the financial crisis started to be felt ten years ago. Overall revenue for the group grew by 9% to $113.51bn – the fastest rate of growth for a decade; gross profit rose by a healthy 8% to hit $43.44bn – a pace unmatched in ten years. Average profit per equity partner (PEP) also rose by a solid 7% to $1.87m. Continue reading “Global 100 overview: Escape velocity as the world’s largest firms pick up momentum”

The Last Word: New frontiers

The Last Word: New frontiers

Despite Brexit, Trump and trade wars signalling a tentative prognosis from Global 100 leaders for the remainder of the year, many firms entered 2019 with engines blazing

No clarity

‘Volatility, trade wars, Brexit and Trump notwithstanding, it’s been a good financial year. Each of our practice areas are strong in terms of work and economically. Mandates are flowing in, it’s a positive story. Threats are out there. Brexit will be priced into the market for the next eight to ten years. There will be peaks and troughs and no clarity for a while.’ Continue reading “The Last Word: New frontiers”

Knights eyes another four acquisitions after 51% revenue increase in first post-IPO results

Knights eyes another four acquisitions after 51% revenue increase in first post-IPO results

Knights has produced a strong debut financial year following its AIM listing, with acquisitions and organic growth propelling the firm to more than £50m in turnover.

Turnover at the company was up 51% to £52.7m, slightly ahead of expectations the company flagged in May, including 15% organic growth. Revenue per fee earner was up 22% to £131,000, with a net 46 increase in fee earners over the year, while net debt fell to £14.1m from £26.3m. Continue reading “Knights eyes another four acquisitions after 51% revenue increase in first post-IPO results”

Clydes senior partner Konsta to step down as firm grows revenue 11% in 2018/19

Clydes senior partner Konsta to step down as firm grows revenue 11% in 2018/19

Clyde & Co senior partner Simon Konsta (pictured) is to step down from his role in October just over half way into his five-year term.

The firm announced today (10 June) that Konsta will hand over to arbitration co-chair Peter Hirst, as it reported its 21st consecutive year of revenue growth to £611m in the year to 30 April, up 11% on £551.3m last year. Continue reading “Clydes senior partner Konsta to step down as firm grows revenue 11% in 2018/19”