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Show me the money! City law firm partners celebrate skyrocketing profits

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Macfarlanes, Travers Smith, Addleshaw Goddard, Clyde & Co and Mills & Reeve post strong financial results

Another batch of City law firms have released their 2018 financial figures — and it’s backslapping and champagne all round.

First up, Macfarlanes. The single-office outfit reported an operating profit of £107 million, up almost a quarter on the previous 12 months, while profit per equity partner (PEP) jumped by a whopping 25.5% to £1.7 million. The outfit’s turnover hit a cool £201.5 million, an increase of 20%.

A spokesperson for Macfarlanes told Legal Cheek: “Thanks go to all the hugely dedicated people who work here, both our lawyers and our business services team. Attract and retain really talented people, give loyal clients excellent service and you have a recipe for strong results.”

Meanwhile, fellow silver circle player Travers Smith reported a 17.5% increase in turnover to reach £146 million, while PEP swelled to £1.2 million — an uplift of 24.3%. Reflecting on this year’s stellar financials, Travers Smith’s managing partner, David Patient, said:

“The strategic investments in our people and business over the last few years are paying dividends, and the confidence we, and our clients, have in our model is reflected in some fantastic work this year, and our bumper promotion round of eight new partners.”

Not to be outdone, national player Addleshaw Goddard trumpeted record results this year, with global revenue hitting £242 million, a rise of 23%. Profits for the 2017/18 financial year grew 36% to £87 million, marking the fourth consecutive year of revenue and profit growth for the firm.

The 2018 Firms Most List

Last summer Addleshaws expanded into Scotland through a merger with Scottish outfit HBJ Gateley, creating, at the time, the UK’s 15th largest law firm. Over the past year or so it has welcomed around 30 new partners across England, Scotland, Asia and the Middle East.

Addleshaws’ managing partner John Joyce said:

“Income is now nearly 50% greater than 2013, continuing the upward trajectory of the last four years in terms of higher revenues, improved profitability and stronger cash position. This has been driven most recently by our successful expansion into Scotland, ongoing investment in priority sectors and global infrastructure.”

Next up, shipping and insurance specialist Clyde & Co. PEP climbed a modest 1.5% to £660,000, while net profit jumped to £140.5 million, up 10% on last year’s result of £127.6 million. Firmwide revenue rose to £551.3 million.

Clyde & Co, which has ten UK offices and a further 36 overseas, revealed 63 lawyers were appointed to partner positions over the past year, taking partner headcount at the firm to over 400 for the first time. Simon Konsta, Clyde & Co’s global senior partner, said:

“We are pleased with these results, which reflect the hard work of our people and the support of our clients. The climate for global business remains complex and our priority is to continue to adapt the services we offer and the delivery of them to ensure we are always providing clients with the very best service locally and globally.”

Finally, national outfit Mills & Reeve said it had enjoyed a reported record turnover of £106 million, up 14% on last year. The firm — which has offices in Cambridge, Birmingham, Manchester and Norwich — also announced a staff bonus pool £2 million, equivalent to 7% of the firm’s total salary bill. It didn’t disclose its profit results but did confirm turnover rose by hefty 14% to £106.3 million.

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35 Comments

Equity

All these got news and increase in profits, yet the so called staff that they value and invest in do not get to see or enjoy any of it, not even a raise.

(16)(1)

Partner at one of the firms listed

Poor you, now get back to billing!

(24)(3)

Macfarlanes

Sweatshop.

(14)(5)

Anonymous

Which team?

(0)(1)

Anonymous

Craig?

(5)(0)

Anonymous

De Burca?

(3)(0)

Anonymous

EU’re not funny.

(3)(1)

Irwin Mitchell

To the equity partners go the spoils…rip

(4)(0)

McVitties

What spoils are those, please do tell.

(0)(0)

Anonymous

A decent wedge which is probably minimum 10x the national average salary.

(1)(3)

Anonymous

Macs have obviously had a stellar year, no denying it. Those financials are impressive, no matter how lame “Macs aren’t a US firm blah blah blah” you think they are.

Good on them I say!

(23)(1)

TheAcresOfFour

Yes, a very good set of results.

They also now have the best litigation support arrangement in the City…

(4)(0)

Anonymous

No they definitely don’t.

(4)(3)

A Passing Observer

So who does?

(0)(0)

TheAcresOfFour

Get lost.

(1)(2)

HL partner

Meanwhile Hogan Lovells partners take home two packets of malt loaf and a Bourbon biscuit

(20)(0)

IM Partner

Show off.

(28)(0)

Anonymous

Hogan Lovells PEP is over 800k –

(4)(0)

Anonymous

Isn’t the City meant to be melting down because of Brexit?

(2)(0)

Solicitor Hopeful

Any insider info on FIELDFISHER? What’s the firm like? Is it good to train there in order to move to Kirkland as an NQ?

(9)(16)

Anonymous

Any inside info on Just Cost Solicitors? Hoping to make the jump to Cravath in New York after qualification.

(39)(0)

Wannabe Lawyer

What about RPC? Anyone have any info on what it’s like to work there? I’m really thinking of moving to a big NYC shop like Skadden or Weil once I qualify – is that possible?

(1)(3)

Anonymous

RPC are a great firm. Train there and stay there.

(3)(2)

Alex A

Thanks. That’ll keep the sponsorship pennies rolling in.

Anonymous

In addition to it being a bad idea to so openly state that you wish to qualify with a firm that didn’t train you, you should drop the idea altogether. Firms aren’t keen on spending £25,000 to train someone who wont go on to qualify with them, so if they catch even a whiff of that sentiment from you, you’re out.

(4)(0)

Anonymous

Hahahahahahaha

(0)(0)

Anchorpants

This post has been removed because it breached Legal Cheek’s comments policy.

(3)(0)

4th Seat Trainee

When will DWF raise London salaries? £59k is beginning to look humiliatingly low.

(10)(0)

Anonymous

Regions at 38k (Scotland at 36) is low too. Know some NQ’s unaware of this took lower too!

(11)(0)

Anonymous

Rumour is they refuse to pay regional 6-7 pqes more than £50k

(7)(0)

Anonymous

It’s still a large salary for a 24 year old NQ.

(0)(2)

Anonymous

Not market value though.

(4)(0)

Kriegentrump

DWFs profits go into the MPs own pockets.

But that’s what narcissist do.

Does it take narcissistic drive to get to the ‚top‘? Yes

Are all MPs narcissists. No.

So, DWF that’s your problem.

(4)(0)

Anonymous

Is it true that Macfarlanes still enforce the wearing of a tie? Bit archaic if you ask me…

(2)(0)

Anonymous

Good one AG – now, raise our salaries… I dare you.

(1)(0)

Comments are closed.

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