City firm Herbert Smith Freehills is the latest to report strong financial results, with profits up 30% to £366.9m in the year to 30 April. Unaudited results announced today also show profit per equity partner (PEP) up 28% to almost £1.1m. Meanwhile, revenue surpassed £1bn for the first time, up 5% on the previous financial year.
Chief executive Justin D’Agostino said: ‘Clients turned to us to advise them on major landmark deals and cases, and to help them navigate the increasingly complex regulatory and business landscape. This strong revenue increase, on the back of client demand and increased market share, accounted for around 60% of our profit increase this year.’
D’Agostino noted ‘especially positive’ revenue performances in Australia, China and London, and ‘exceptionally strong growth’ in HSF’s newer offices in Johannesburg, Kuala Lumpur and Milan. ‘It is also pleasing that part of our China revenue growth has been driven by our joint operation with Kewei, which was established two years ago,’ he said.
Meanwhile, net profit at Eversheds Sutherland has risen by 15% to £122.6m for the last financial year, on revenue up 6% to £629.1m. PEP also rose by 9% to £984,000.
Lee Ranson, chief executive of Eversheds Sutherland (International), said: 'As we look to the future, we are committed to continuing our programme of significant strategic investment such as the roll-out of our new document and practice management systems, to building true global alignment and to continued recruitment in key practice areas and geographies.'
Both Herbert Smith Freehills and Eversheds Sutherland said they have repaid the funds they received from the UK government under the job retention scheme.
The top-50 financial results season is now well under way, with ‘record’ activity levels, rising revenue and spikes in partner profit. Fieldfisher and Pinsent Masons have also reported strong rises in PEP, while CMS and Kennedys have reported revenue growth.