Two top-50 firms have reported strong increases in profits and turnover in the latest announcements of the 2023/24 reporting season. 

In the year to 30 April, pre-tax profits at international firm Addleshaw Goddard rose 14% to £210.5m on turnover up 12% to £495.6m, the firm announced today. It does not reveal a figure for profits per equity partner.

Both growth rates have slowed on those reported for the 'outstanding' post-pandemic 2022/23 financial year. 

However Andrew Johnston, Addleshaw Goddard managing partner, said the results show a 'positive trajectory'.

'We saw growing client demand across a number of service-lines, particularly in areas we have been investing in such as funds, restructuring, global investigations and financial services. Our teams across the UK & Ireland, EMEA and Asia worked incredibly hard to deliver another strong year.'

Financial services contributed 30% of the firm's income. Revenue growth was particularly strong in the Middle East, following the opening of a new office in Riyadh, and was 30% up in Ireland, two years after the firm opened a Dublin office. 

'The diversified nature of our business, coupled with our international expansion and other strategic investments, particularly in innovation and technology, means we are better placed than ever to support and service clients wherever they are doing business,' Johnston said. 

Meanwhile fellow international firm DAC Beachcroft has reported record profits in its tenth successive year of revenue growth. In the 12 months to 30 April, the firm reported pre-tax profits up 15% to £71m on turnover up 9% to £326.5m. Profit per equity partner exceeded £700k, the firm said. 

The profit growth showed a recovery from 2022/23, when profits dropped by 7%. 

David Pollitt, managing partner, said: 'We set ourselves ambitious financial targets for FY24, and we have seen very strong performances from our core sectors of insurance, health, real estate, technology and financial services, as well as from our international offices. As a result, we have beaten our targets, whilst continuing to make key investments in the future success of our business. 

'Among those investments, we have been exploring additional ways to harness the power of AI. In addition to creating AI-based products for our clients, we established a dedicated AI committee which is driving our strategy, and we are developing our own in-house, AI-powered "bot" to increase internal efficiencies.' The firm is also making use of Microsoft's CoPilot machine learning product within the business.

Pollitt added that the firm continues to reap the rewards of its 'Flex Forward' hybrid working scheme, 'which sets us apart for the flexibility we offer our colleagues to balance their personal and professional commitments more easily'. 

 

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