Allen & Overy (A&O) is the latest top law firm to push through the billion-pound barrier with the City giant reporting revenues climbing to £1.01bn for 2007-08.
The magic circle firm saw a 15% rise in turnover in its year to April, up from £887m during the previous year. Profits climbed by 9% bringing the average profits per equity partner (PEP) to a total of £1.12m.
Equity partners’ drawings now start at £658,000 rising to £1.645m for plateau partners. The firm averaged 362 full equity partners over the year, up from 354 over the previous 12-month period. The firm had a further 112 partners on fixed share status.
Figures prepared for its filing as a limited liability partnership show that pre-tax profits increased by 13% to hit £447m while staff costs were up from £322.7m in 2006-07 to £361m. Total lawyer count worldwide rose by 8% to 2,686.
The figures represent a slowing in growth from last year when the firm’s revenues rose by more than 20% and PEP soared by 36%. However, the result will be seen as a confident performance given the sustained pressure on the finance leader’s core practice area. The result is also largely in line with its arch rival Clifford Chance, which saw its top-line grow by 13% in 2007-08 to reach £1.329bn.
The result means that all of London’s ‘big four’ now generate annual revenues of more than £1bn, with Freshfields Bruckhaus Deringer also this year also achieving a 10-digit income for the first time.
A&O said that more than half of its income now comes from its foreign offices after a period of aggressive growth in practices in Moscow and the Middle East.
The firm has underlined its international commitment over the last 12 months with a renewed programme of foreign expansion including launching new practices in Riyadh, Abu Dhabi, Mannheim and Duesseldorf and a referral agreement with Indian practice Trilegal.
A&O said that its New York arm continues to see growth despite the pressure on the US economy, with fee-earner numbers climbing to 160 and the US corporate practice acting on deals including advising Novartis on the $40bn ($20bn) acquisition of Alcon from Nestle.
The firm’s year was also notable for the election of a new leadership team with David Morley taking over from the outgoing Guy Beringer while Wim Dejonghe took Morley’s position as managing partner.
Morley (pictured right) told Legal Week: “We are pleased with the results. They are a testament to our people and the faith our clients put into us. These are tough times but we are optimistic moving forward.”
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