Freshfields hits mute on trading performance

Freshfields Bruckhaus Deringer has become the second major firm in a week to disclose that it will no longer publish key data on trading performance during the traditional summer ‘results season’.

From next year, disclosure will be limited to mandatory accounts filings at Companies House. These normally appear as long as nine months after the year end and do not require the firm to divulge profit per equity partner. Freshfields did not file group accounts for the year to 30 April 2022 - when partner profits soared by more than £100 million - until 31 January this year.

The announcement came as the magic circle firm became the latest City outfit to reveal flattening profitability in 2022-23, despite a seventh consecutive year of income growth. Profit per equity partner climbed 1% to £2,090,000 in the year to 30 April, while revenue rose 8% to £1.84bn.

Senior partner Georgia Dawson (pictured) said: ‘We have a global growth strategy that puts the US at the heart of the firm alongside our leading European, Asia and MENA businesses. It provides a unique global offering for our clients that sees them turn to us for their most strategic matters crossing practices and borders.’

In 2022-23 the firm published its second diversity and inclusion annual review. Highlights, according to the firm, included the fact that 48% of new partners joining the global partnership were women. In the US, over the past 18 months, more than 60% of lateral partner hires were ‘diverse’. The number of black associates has doubled in two years, though the firm declined to give a figure.

The firm’s 5% LGBTQ+ global partnership target has been achieved ‘three years ahead of schedule’.

Managing partner Rick van Aerssen said: 'We’re proud to grow our business across all key financial metrics, while making considerable investment in the future of the firm. As we assess our financial reporting in line with our global peer group, from next year onwards, we will not be releasing financial information to media at this point in the year. All financial information which we must release as a matter of law will continue to be available via Companies House in the usual way. We consider the real sign of the firm’s progress to be based on the quality of business we’ve built and the client mandates we’re winning around the globe.'

Earlier this week Mishcon de Reya said it will no longer publish profit per equity partner, describing the metric as ‘not helpful’.