Magic circle firms Freshfield Bruckhaus Deringer and Linklaters both reported strong increases in profit per equity partner (PEP) today.
Freshfields posted a 6% increase in profit per equity partner (PEP) to £1.48m for 2013/14 - the highest PEP figure of the four magic circle firms to post results for the year ended 30 April.
The firm’s overall profits for the year rose 5% to £578m, on revenue up 1% to £1.232bn. Last year Freshfields recorded PEP up 7.6% to £1.39m, compared with 2011/12. Profits rose 2.4% to £548m on turnover up 7.2% to £1.221bn.
David Aitman (pictured), global managing partner at Freshfields, said the firm had strong transactional, regulatory and contentious practices across the world.
‘These practices position us well going forward as confidence returns to the global economy. This good set of results reflects the trust our clients have put in us to meet their needs around the world,’ he said.
Meanwhile PEP at magic circle firm Linklaters rose 5.9% to £1.39m in the firm’s results for the year ended 30 April. Overall profits rose 6.8% to £557.3m - the highest of the four firms - on revenue up 5% to £1.255bn.
Last year Linklaters’ PEP rose 5.6% to £1.313m, while profits increased 0.2% to £521.9m on a 1% fall in turnover of £1.195bn.
Simon Davies, Linklaters’ managing partner, said the firm’s practice groups all maintained or improved performance for 2013/14. ‘In particular, significant demand for our services has come from banks and financial investor clients, with transactional, contentious and non-contentious regulatory work, litigation and arbitration also being particularly active,’ he said.
Last week Clifford Chance reported a rise in PEP of 16% to £1.14m, on underlying profits up 14% to £459m. Its turnover was a record £1.36bn.
Allen & Overy also posted its ‘highest-ever figures’, with PEP up 7% to £1.12m, profits up 7% to £532m, and revenue growth of 2% to £1.23bn.
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