Pre-tax profits up too
Magic circle law firm Linklaters has gone public with its latest financial results, with partner and pre-tax profits enjoying sizeable uplifts “despite the uncertain backdrop of the last year”.
Links confirmed profit per equity partner (PEP) rose 9.9% to £1.77 million while pre-tax profits hit £815.3 million — an increase of 12.2% on the previous year. But revenue growth was somewhat muted, rising a little over 2% to £1,673.9 million.
“Despite the uncertain backdrop of the last year, we are pleased to report a very strong set of financial results,” Paul Lewis, Linklaters’ firmwide managing partner, said. “Our results are testament to the hard work and excellent performance of our people over that period, especially given its unique challenges. Our global capabilities and enduring client relationships also came to the fore as clients turned to us to help them to navigate the myriad issues arising from the pandemic.”
The firm said it did not use government financial support packages during the pandemic and resultant lockdowns. It did, however, cut newly qualified lawyer pay to £90,000 in the summer of last year before re-upping it in April to £92,500 plus a discretionary performance bonus. Links has since gone on to up base rates to £100k following similar moves by some of its elite UK-headquartered rivals.
“The world is evolving at pace, catalysed by the effects of the pandemic. Climate, technology and data are just some of the globe-spanning topics that will define the next decade and beyond. Leading businesses need advice from a leading global law firm, capable of providing top quality service consistently across multiple jurisdictions. We are committed to ensuring that Linklaters continues to be that firm.”
Elsewhere, Allen & Overy and Clifford Chance recorded PEP results of £1.9 million and £1.85 million, while Freshfields reported a figure of £1.91 million. Slaughter and May chooses not to disclose its financials.