The wildly-varying fortunes of law firms have been revealed this week following the release of an eye-popping set of results.
Most impressively, Shoosmiths have posted a outrageous 70% increase in profits per equity partner (PEP), taking partner earnings up to an average of £256,000. That's despite turnover dropping 9% to £90 million. Hmmm - so the profit rise must be down to ruthless cost-cutting then? No no no, a spokeswoman for the firm said "it has been a very good [year] for developing existing clients and for winning new ones". So the extra profits from lower income must come from magic client fairy dust.
And it's been a good year too (for the partners) at Withers, too. PEP has shot up an astonishing 31% to £357,000 on a stagnant turnover of £93 million.
But it's less good news elsewhere. Macfarlanes have reported a 16% drop in PEP to a mere £710,000. Not really to be sneezed at - but in 2007-8, PEP was reported as £1.1 million. Turnover was also down 7% to £92.4 million.
And tough times at DLA Piper, who have announced (without fanfare) an 18% drop in PEP, down to £527,000. As reported on RollOnFriday last October, it's been a rough ride for the firm in the Middle East. CFO Paul Edwards told The Lawyer that if the region - where the firm's revenues have dropped 40% - were removed from the calculation, PEP would be down a mere 3%. So the extra 15% fall from the Middle East is a serious blow to the business.
In other results-related news, an update on RollOnFriday's story that all A&O staff would be receiving an extra day's holiday - by way of thanks for the firm's strong results. Unfortunately, not for the firm's German lawyers. They may have beaten their budget by 14% (compared to a mere 1% in London) but that apparently isn't enough to benefit from the extra day off - staff were told that the free day off would be split between 24 December and 31 December. So that's two half days for which German offices had been closed in previous years anyway. Frohe Weihnachten!
Check out the full table of firm results as they appear here.
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Most impressively, Shoosmiths have posted a outrageous 70% increase in profits per equity partner (PEP), taking partner earnings up to an average of £256,000. That's despite turnover dropping 9% to £90 million. Hmmm - so the profit rise must be down to ruthless cost-cutting then? No no no, a spokeswoman for the firm said "it has been a very good [year] for developing existing clients and for winning new ones". So the extra profits from lower income must come from magic client fairy dust.
And it's been a good year too (for the partners) at Withers, too. PEP has shot up an astonishing 31% to £357,000 on a stagnant turnover of £93 million.
But it's less good news elsewhere. Macfarlanes have reported a 16% drop in PEP to a mere £710,000. Not really to be sneezed at - but in 2007-8, PEP was reported as £1.1 million. Turnover was also down 7% to £92.4 million.
And tough times at DLA Piper, who have announced (without fanfare) an 18% drop in PEP, down to £527,000. As reported on RollOnFriday last October, it's been a rough ride for the firm in the Middle East. CFO Paul Edwards told The Lawyer that if the region - where the firm's revenues have dropped 40% - were removed from the calculation, PEP would be down a mere 3%. So the extra 15% fall from the Middle East is a serious blow to the business.
In other results-related news, an update on RollOnFriday's story that all A&O staff would be receiving an extra day's holiday - by way of thanks for the firm's strong results. Unfortunately, not for the firm's German lawyers. They may have beaten their budget by 14% (compared to a mere 1% in London) but that apparently isn't enough to benefit from the extra day off - staff were told that the free day off would be split between 24 December and 31 December. So that's two half days for which German offices had been closed in previous years anyway. Frohe Weihnachten!
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A&O's German associates rush to enjoy their extra day's holiday |
Check out the full table of firm results as they appear here.