While Macfarlanes added around £5m to its fee income of £105m in 2005-06, profits per equity partner (PEP) at the top 30
Senior partner Charles Martin cited the firm’s investment in property over the period as a factor in the profits figure remaining largely flat, with the impact of the credit crunch also taking its toll on the firm’s practice, which is largely based in the UK and saw little benefit from more buoyant conditions in emerging markets overseas.
Martin cited the corporate, funds, private client and litigation groups as strong performers over the period. However, the firm’s real estate team is thought to have suffered as a result of a downturn in the market.
Earlier this year Macfarlanes made up five lawyers to its partnership, with the City firm’s corporate practice surprisingly missing out. The promotions represented a marginal increase on the previous year, when the firm made up four new partners.
The firm’s results will be closely watched by key City rival Travers Smith, which has a June year-end and is yet to announce its own financial results.
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