Addleshaw Goddard PEP plunges 25% as top of equity falls by nearly £350,000

Addleshaw Goddard’s profit per equity partner fell to £511,000 in 2016-17 – a 25% drop on the £682,000 recorded the previous year.

Top of equity at the UK firm plummeted from a record high of £1.122m last year, to £776,000 – a drop of 31%.

Partners at the bottom of the lockstep will receive £277,000, down from £295,000 in 2015-16 – a 6.5% fall. Net profit fell to £46.9m.

The fall in PEP came against a 5.8% increase in equity partner numbers, which climbed from an average of 86.7 in 2015-16 to 91.7.

Addleshaws’ 2015-16 financial results were boosted by fees paid for mandates from previous years. The firm is understood to have gained more than £10m in fees paid out from the estate of oligarch Boris Berezovsky, who the firm acted for on more than 30 cases, most famously a $6bn (£3.8bn) battle with Chelsea FC owner Roman Abramovich, which Berezovsky lost in September 2012.

A spokesperson for the firm said: “In 2015-16 we explained that our results included a large, one-off gain in relation to work undertaken in prior years and that will obviously distort comparisons with the last 12 months. On an underlying basis we saw our value per point increase, which our partners will see the benefit of and we are very pleased with the results we achieved.”

Confirmation of Addleshaws’ profit figures comes after the firm announced on Monday that revenue had fallen by 2% when compared with last year’s uplifted figure, with fee income dipping from £201.8m to £198m. The firm said underlying revenue for the period increased.

The results mark an end to a period of positive growth for Addleshaws, which last year saw revenue climb by just under 5% against a 39% hike in profits per equity partner.

Following the close of the 2016-17 financial year, the firm achieved managing partner John Joyce’s long-held desire of a Scottish merger, combining with 134-lawyer firm HBJ from 1 June.

The deal will boost the firm’s revenue by around £20m in 2017-18, but did not have an impact on 2016-17 results.