Top-50 firm Macfarlanes has become the latest City practice to report a dip in commercial performance in the past year. Unaudited results released today for the year to 30 April 2023 show operating profits slipping 6.1% to £154.1 million on turnover down 2.3% to £296.6m.
Profit per equity partner fell by 15.8% to £2.1m.
This time a year ago the firm was celebrating a 19% leap in profit per equity partner to a record £2.5m. Revenue in the year to 30 April 2022 rose by 16% to £303.7m with operating profits 15% up to £164.2m.
Commenting on the results, senior partner Sebastian Prichard Jones said: 'The 2022/23 financial year proved a more challenging year for our firm due to difficult market conditions, although the outcome was still satisfactory.
’After the exceptional impact of the pandemic, which had a positive effect on our financial performance, in a number of respects this was a year of consolidation. This included an increase in our equity partnership by 10%, which had what we anticipate to be a short-term impact on our PEP figure. This is an investment we were pleased to make,’ he said.
'After taking a pause for breath in 2022/23, we remain in a strong position and are confident we will move forward again this year.'
The firm also announced that from this year its financial year will end on 31 March, meaning that the current financial year will run for only 11 months.
Macfarlanes is the latest firm to experience a slowdown following the boom post-pandemic year. Magic circle firms Allen & Overy and Clifford Chance have also this month reported flat or declining profits.
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