International firm Pinsent Masons has reported slow profit growth and a slump in profit per equity partner (PEP) following investment in IT and cybersecurity.
According to unaudited figures for the year ending 30 April, gross profit rose by just 2.5% to £192.4m and PEP fell for the first time in six years. It dropped by 5% from £653,000 to £620,000. Global turnover is up by 7%, however, reaching £482m.
The firm said it had expanded its business in areas ‘complementary to legal services’ over the past year and had invested in alternative forms of service delivery. It also invested in technology which ate into partner profits, it said.
Managing partner John Cleland said: ‘The past year has been one of unprecedented change and complexity for our clients. Our partnership is continuing to focus on making the investments that enable us to help clients respond to that trend. We’re continuing the transformation of our business from an expertise-based law firm into a modern, international professional services business with law at its core.’
Earlier this week, Ashurst, Macfarlanes and Bird & Bird announced a strong set of financial results, with Ashurst partners enjoying a PEP rise of over 30%.