Currency fluctuations caused in part by Brexit uncertainty continue to affect the earnings of City firms, latest results for the last financial year suggest.
At magic circle firm Freshfields Bruckhaus Deringer a weakening of sterling added £52.3m to the firm's revenue, according to accounts published at Companies House this week.
Overall, profit before tax rose 15% from £417m to £481m. Total revenue was £1.4bn, up 7.7% from £1.3bn. The firm’s senior management shared £18.6m, marginally down from the £19.1m they shared in 2016/17.
International firm DLA Piper was another firm whose results were impacted by currency movement. It reported profit before tax of £317.8m, up 3% from £307.4m and a 4.9% increase in revenue (£919m). However, the firm noted that 'excluding the impact of foreign exchange rate movements' would have reduced revenue by £10m. The firm's ‘key management’ drew £44m, up 22% from £36m in April 2017.
Pinsent Masons also reported growing profits and revenue. Pre tax profits grew 9.2% to £130m on revenue up 4.9% to £384m. The highest paid of the firm’s 354 partners drew £1.2m, up from £938,000, while pay for the ‘key management’ group totalled £2.035m down from £2.4m.
Meanwhile in accounts for the calendar year 2018, US firm Quinn, Emanuel Urquhart & Sullivan reported a profit margin of 70%, one of the best in the square mile. Net profit was £59.2m on revenue of £83.5m.