PROFIT PERFORMANCE: contrast as firms reveal income stats

The contrast between the squeeze on partner profits in the City and stronger performances from outside London came into focus again this week as three major firms reported annual results.

East Anglian firm Mills & Reeve saw fees rise 18% to 32.2 million in 2002/3, with profits up 22% to 10.9 million.

Top 15 City firm Ashurst Morris Crisp increased income 6.5% to 197 million, but profits per equity partner dropped slightly to 590,000.

Profit shares fell 5%, with those at the top of its ten-year lockstep receiving 800,000 and those at the bottom 320,000.

Charles Russell announced a 5% increase in turnover to 43.8 million, with average profits per partner down 5,000 to 255,000.

Those at the bottom of the equity suffered most, receiving 120,000 compared to 160,000 last year; those at the top saw a 1,000 drop to 285,000.

Mark Jeffries, managing partner of 66-partner Mills & Reeve, said regional firms' performance reflected the broader base of their practices compared to City firms, allowing them to weather economic downswings.

Ashursts' managing partner, Justin Spendlove, said the firm was 'very pleased' with the results.

'They show the continuing strength of our business - most notably in Brussels, Milan, Paris and Tokyo - and that has enabled us to take tough decisions and to work on new and important initiatives as we continue to build our range of businesses.'

At 75-partner Charles Russell, managing partner Grant Howell said every department billed more than the year before, with litigation performing especially well.

He said: 'This has been a relatively good year thanks to good business despite difficult circumstances...

Continued tight control on overheads and improved cash collection have also been key.'