The results come as other leading City players predict similar increases, expecting the full impact of the credit crunch not to be felt until the next financial year.
Top 10 City player Simmons fired the starting gun this week (6 May), reporting a 16% jump in revenues to hit a new high of £290m — up from £250.4m in 2006.
The firm is also expecting average profits per equity partner (PEP) to jump by at least 13% to more than £600,000. Final figures are still to be calculated but the figure would represent a significant improvement on last year’s PEP figure of £532,000.
Simmons managing partner Mark Dawkins (pictured) told Legal Week: “All regions and practices performed pretty well. Importantly, we did not see anything fall off a cliff.
“Geographically, we have natural hedges built into the business. For example the
Wragges, meanwhile, has announced an increase in turnover of 11.5% to £125.5m, up from last year’s figure of £112.6m. The increase represents the fourth consecutive year of double-digit revenue growth.
Other firms predicting similar increases include Lovells and Nabarro. In addition, Herbert Smith is estimating its revenues will jump by around 20% to break £400m.
Commenting on the market, Clifford Chance head of restructuring Mark Hyde said: “The magic circle firms will post a good year, with the first six months being exceptional but the second less so. However, the really interesting issue is what will happen in the next financial year. Given that work levels are uncertain, everyone is concerned about costs.”
John Bennett, head of corporate at Berwin Leighton Paisner, added: “The results will be commensurate with the year we went through. Strong up to the summer but weak into the new year.”