Revenues also up
Allen & Overy (A&O) has become the first member of the magic circle to go public with its 2022 financial results, with the firm enjoying a 10% uplift in revenues thanks to “exceptional” growth in the US.
The firm today confirmed revenue is up £170 million to £1.94 billion, while profit before tax increased 9% to £900 million for the year ended 30 April 2022. Profit per equity partner (PEP) hit £1.95 million, marking a 3% increase on the previous year.
A&O — which over the past year to so has opened hubs in San Francisco, Silicon Valley, Boston and Los Angeles — said more than 50% of its revenue growth came from activity across the pond.
Commenting on the results, global managing partner Gareth Price said: “Last year we demonstrated the power of our international platform to meet the sophisticated needs of our clients in an increasingly complex landscape for global businesses. Our clients are facing major new challenges and we have invested to broaden our capabilities to support them as well as expand our expertise in key markets to maintain our industry-leading local depth connected by global reach.”
“The global economy continues to be impacted by high inflation and the business environment for our services has been softening in recent months. We expect these conditions to persist in the coming months but we remain confident that our diversified business provides resilience and positions us well for the more challenging conditions ahead.”
The firms latest set of financial results come just two weeks after it told junior lawyers they would be missing out on pay rises — for now — due to what the firm described as “challenging” economic conditions. The Legal Cheek Firms Most List 2022 shows newly qualified (NQ) associates currently earn a base salary of £107,500.