PEP more than halves at Stewarts

Profits at litigation specialist Stewarts have reverted to something like the historical norm after an ‘extraordinary’ year in 2021/22.

In the year to 30 April 2023, profit per equity partner fell to £1.2m from £2.7m in the previous 12 months, on income which dipped from £115m to £85.1m.

Total remuneration to all classes of partner (including full equity, junior equity and fixed share) was £39.6m, with an equity spread of £592,335 to £1,666,363.

Last year’s stellar performance ranked the firm well ahead of magic circle firms Clifford Chance and Freshfields Bruckhaus Deringer, which both posted average PEP of just over £2m, and even City firm Macfarlanes, which previously led the way with £2.48m.

Stuart Dench, Stewarts’ managing partner said: ‘I am pleased to announce a solid set of financial results. The financial outcome in year 21/22 was extraordinary and we did not anticipate or budget for revenue and profit at that level in 22/23. As a disputes-only law firm, our revenue is non-linear, and this represents a good core income performance and is our second highest revenue year.’

He added: ‘We have continued to make substantial investment in DBA and CFA mandates for the future. During the course of the financial year we made five lateral hires, and made five internal promotions to the partnership.’

Stewarts has offices in London and Leeds.

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