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H1 results: SJB turnover up 22%, Lovells up 10%

Author: Charlotte Edmond

Published: 06/11/2007 09:50

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SJ Berwin and Lovells have become the latest firms to unveil double-digit turnover increases for the first half of the year, with the City duo reporting rises of 22% and 10% respectively.

SJ Berwin has seen its half-year turnover rise by almost a quarter to reach £99m – putting the top 20 City practice on track to break the £200m mark for a full financial year for the first time. Last year SJ Berwin reported a year-end turnover of £189m.

Commenting on the firm’s performance, senior partner Jonathan Blake said: “Both London and our continental offices have performed well. Obviously with the turmoil in the financial markets we had a bit softer September than usual, but we were strongly up in October.”

Lovells, meanwhile, reported a more modest 10 % rise to in revenues for the first half of 2007-08 after raking in £225m in fees. The results, which were announced to partners last night (5 November), represent a significant improvement on the equivalent period last year, when the City giant saw revenue increases by just 4% to £205m.

Lovells managing partner David Harris said the firm’s strong litigation and restructuring practices had performed well across the period, as had its network of international offices. He highlighted the fast start made by the firm’s new Dubai base, which has already advised on financings worth more than $8bn (£3.83bn) since launching in May.

Harris said: “We have a programme of sustained investment in strategic practice areas and markets. So far in 2007 we have recruited 22 partners to the firm into markets and practice areas where we see growth opportunities for us. An area of particular successful investment in the past few months has been our new US restructuring team, which has brought in new work in the debt restructuring [and] hedge fund area on the back of uncertainty in the financial markets.”

Last year Lovells reported a 7% increase in revenues to hit £425m.

Both firms said they had largely escaped the effects of the credit crunch, with Blake adding: “Although we obviously do some big deals, we do less of the 'mega' deals with large amounts of debt. This has cushioned us to some extent.”

The results come with a clutch of leading City firms having posted major turnover rises for the first half of the year, with Ashurst, Herbert Smith (both 25%) and Norton Rose (23%) among the strongest performers.

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