Profits up as Magic Circle firms announce financials
06 July 2012
Four of the five Magic Circle firms announced their financial results this week, releasing - under the current economic conditions - pretty decent figures. Especially if you're an equity partner.
First out of the blocks was Allen & Overy
, which confirmed that revenues had edged up 6% to almost £1.2 billion, with PEP static at £1.1 million. But from its eyrie in Canary Wharf, Clifford Chance
beat that turnover figure with a 7% increase to £1.3 billion, although its PEP lagged slightly behind at £1.078 million. Still, who's counting a mere £22,000?Freshfields
, after bafflingly embargoing its results for the whole of the week, has seen revenue remain almost completely flat at £1.139 billion compared to £1.140 billion last year. As a result, its PEP has dropped 1%. The horror! Even so, Freshfields partners will continue to get plenty of use out of their titanium-reinforced wallets, as they cart home £1.299m each on average. No wonder Managing Partner "Super
" Ted Burke said the firm had enjoyed a "good year...[with] strong activity levels
||Magic Circle partners are going to need a bigger wheelbarrow |
Last up comes Linklaters
, reporting a marginal 0.6% rise in revenue. No word on PEP, but last year it was £1.225 million, so expect something similar this time round. Or perhaps a bit higher, given the significant partnership pruning
at the firm last December (or "cost control
", as the firm's official statement preferred).
So all that the legal market is waiting for is Slaughter and May. Which doesn't really announce financial results, the talk of money being seen as somewhat uncouth. And anyway, if you read the FT, it turns out Slaughters isn't in the Magic Circle anyway
Amongst the chasing pack, Ashurst
reported a 3% increase in PEP to £744,000. Managing Partner James Collis confirmed that "Italy...performed extremely well
" which seems impressive achievement in one of the EU's most moribund economies. And Simmons & Simmons
posted a revenue increase of 3.6% but PEP up 15% to £528,000. However Clyde & Co
came top of the turnover chart with a sparkling 36% increase in fee income, although over half that increase came as a result of last year's merger with BLG. Still no word on profits from Clydes, which could well be a more interesting measure of the success of the tie-up.
More results as they appear.