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Reed Smith hits $1m PEP in post-merger results

Author: Jeremy Hodges

Published: 10/01/2008 15:53

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Reed Smith has become the latest US firm to unveil its financial results for 2007, with the Pittsburgh firm breaking the $1m (£510,000) barrier for profits per equity partner (PEP) for the first time.

PEP climbed from last year’s mark of $940,000 (£476,140) to reach a new high of $1m – an improvement of just over 6%. Revenue per lawyer also edged up by 6%, from $652,000 (£332,000) to $690,000 (£351, 000).

The improved performance comes against a surge in turnover of 39%, largely due to the firm’s combination with legacy City outfit Richards Butler, which went live at the beginning of last year.

Total fee income at the combined practice – which operates in the UK as Reed Smith Richards Butler – grew from $644m (£328m) in 2006 to a mark of $829m (£422m).

Last year the firm also agreed to merge with mid-size Chicago firm Sachnoff & Weaver, which is thought to have added around $20m (£10.2m) to the coffers.

In October the firm finally sealed an agreement with Richard Butler’s profitable Hong Kong arm, with the respected Asian practice – thought to be worth around $40m (£20.4m) a year – coming under the Reed Smith banner from 1 January, 2008.

Reed Smith European managing partner Roger Parker said the results were “above and beyond where we expected to be”.

He added: “We want to make the business hum. But we wouldn’t rule out further strategic growth.”

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