International firm HFW recorded a 1% drop in revenue last year, which it attributed to a pandemic-related reduction in headcount and the strengthening pound. In the year to 31 March,  revenue fell from £200.2m to £198.7m. The firm said 60% of revenue is now generated outside of the UK and turnover in Australia grew by nearly 8% last year. HFW added that it plans to ‘replicate this growth across its international network’.

HFW put the fall in revenue down to ‘a slight reduction in lawyer headcount [as] a result of prudent management of the business during the Covid-19 pandemic’ and the stronger pound which ‘impacted the firm’s revenue by 3.1%’, saying that it would otherwise have increased to £204.9m.

Net profit was also down by 9%, from £59.7m in last year’s results to £54.5m, which HFW said was ‘due to a reduction in the extraordinary cost savings that all law firms saw during the pandemic’ as its ‘global network began to return to normality’.

The firm did not provide a figure for pre-tax profits. However average profit per equity partner fell by 2% to £669,000, though HFW posted record revenue per lawyer of £417,000 – 1% up on the previous year.

Managing partner Jeremy Shebson said: ‘To have achieved the two best financial performances in the 140-year history of the firm during what has been an extremely challenging period is a real testament to everyone at HFW.

‘Having taken a prudent approach to managing the business throughout the pandemic, and to a certain extent putting our growth on hold, we are now looking to really ramp things up.’