City firm Macfarlanes has become the latest firm to report a stellar year, posting an increase in its operating surplus and record profit per equity partner (PEP).
Operating profit came in at £107m, an increase of nearly 25% on the previous 12 months, while PEP was £1.7m, up 25.5%. Turnover climbed 20% to £201.5m, revealing an operating margin that makes Macfarlanes one of the most profitable law firms in the Square Mile.
The firm said the results reflected a great year and one in which nearly all its markets were buoyant.
A spokesperson for the firm said: ‘We live in an age of increasing volatility and law firm financial performance is bound to reflect that. Our firm is no different and we expect our results to show variable growth year on year. This year has started encouragingly, but there are many potential headwinds out there. We expect the coming year to be more challenging and we do not expect to enjoy the level of growth that we saw last year every year.’
Meanwhile, national firm Mills & Reeve said its staff would be sharing a £2m bonus pot after a ‘stellar year’.
The firm did not provide profit figures but said turnover rose to a record £106.3m - an increase of 14% on 2017.
‘As a result of the strong financial performance the firm has announced the largest-ever all staff bonus pool of £2m, equivalent to 7% of the firm’s salary bill. This equates to a bonus for every full-time employee who has been with the firm for at least a year,’ the firm said.
This equates to a bonus of £2,273 for every full-time member of staff who meets the criterion. Additional sums are awarded to staff who have been with the firm for over three years and five years. There is also a pro rata bonus for members of staff who are part-time and/or who have not been with the firm for the whole financial year.