Net profit has flatlined at magic circle firm Freshfields, while profit per equity partner has dipped amid a ‘challenging economic climate’.
In the final results statement from the elite group of firms, Freshfields today disclosed net profit of £685m for the year ending 30 April 2020, down from £688m this time last year. Meanwhile, PEP has fallen from £1.84m to £1.82m. Revenue has continued to grow, however, increasing by 3% to £1.52bn.
Stephan Eilers, managing partner, said: ‘This is a strong set of results, driven by a long-term strategy that has seen us progress despite the challenging economic climate. We have made some significant investments this year that give us an even stronger platform for the future, and I’m excited about what we can achieve.
‘We continue to advise on the most dynamic mandates in the market and are forging ahead with our US expansion plans. I would like to thank our people for their outstanding efforts and above all our clients for trusting us with their business-critical matters right around the world.’
Clifford Chance is the only magic circle firm to report an increase in profit and PEP so far this year. A&O and Linklaters have reported profit dips, citing provisions for the current market uncertainty caused by Covid-19. Slaughter and May does not usually release financial results.