City firm Stephenson Harwood has reported that profit per equity partner topped £1m for the first time in what was a bumper year for the business.
Results for the year ended 30 April show that revenue increased by 17% to £309m – the first time the firm has gone through the £300m mark.
Profit per equity partner increased by 29%, with net profit up 33% to £130m.
Just over half-way through its five-year strategy, revenue has increased by more than 50% over the period while PEP is up 46%.
‘These results – which include our highest-ever revenue and PEP – are a testament to the commitment and dedication of our people, and our growth-oriented strategy,’ said chief executive Eifion Morris. 'This progress reflects the strength of our client relationships and a sharper focus on where we can deliver the most value. What’s made the real difference, though, is how our people have embraced the strategy – especially our focus on five strategically important sectors. Their commitment continues to drive our momentum.
'That momentum has also brought greater clarity about who we are and what sets us apart. It’s not always easy to articulate what differentiates law firms, but we’re not the firm we were a few years ago.’
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The global bonus pool for this year will be £6m, which includes a 36% uplift in bonuses paid to fee-earners. A significant share of bonuses are linked to the work that staff have originated: two managing associated have each received bonuses of more than 135%.
Morris also stressed that Stephenson Harwood remains committed to its diversity and inclusion policies and that these were ‘not a set of boxes to tick’.
He added: ‘I’m proud of the progress that we’ve made; we exceeded our ethnicity targets at partner level, and though we have fallen short of our gender targets, we have made progress towards them.
‘Looking ahead, we’ve set new targets for the next three years, which include a higher proportion of ethnic minority partners in the UK – 15% in total - and a target of 38% women partners globally.
‘This work remains a personal priority for me. I firmly believe that our firm – and the way we serve our clients – is stronger and more effective because of it.’
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