Just one out of nearly 20 top 50 firms to have reported H1 results has failed to record double-digit growth, with a wide range of firms enjoying increases of more than 20% on the same period last year.
Firms including Bird & Bird, SJ Berwin, CMS Cameron McKenna, Norton Rose and Nabarro have all seen revenues increase by more than 20% over the six-month period, with Berwin Leighton Paisner managing a 19.5% rise.
Chasing pack firms have unveiled the biggest growth, with Ashurst and Herbert Smith both seeing their turnover increase by at least 25% to hit £147m and £183m respectively. Herbert Smith is also understood to have seen profits grow by a similar amount, which would take average profits per equity partner to slightly more than £1m if it continues to increase at the same rate for the rest of the year.
While magic circle percentage increases are marginally down on those reported this time last year, Freshfields Bruckhaus Deringer and Allen & Overy (A&O) still reported rises of 18% and 16% respectively following a strong first quarter.
Linklaters partners say revenues are in line to grow by around 20%, while some at Clifford Chance expect growth of well over 10%, despite the news that the firm has cut six
However, firms have warned that the second half of the financial year will inevitably be more challenging in the light of current market conditions.
Ashurst managing partner Simon Bromwich commented: “It will be a very interesting six months seeing what growth firms manage in profit and revenues for the rest of the year, now that the big deals have fallen away.”
A&O corporate partner Mark Wippell added: “Over the next few months I think we will see a lot of continuing M&A activity, but after that it is much more uncertain. We have not seen the last of the consequences of the credit crunch and it will take time for these to work their way through. This, and other broader economic trends, may lead to a downturn next year, although we are not seeing it now.”