The UK-based arm of transatlantic powerhouse Bryan Cave Leighton Paisner suffered tumbling profits and shed one-fifth of fee earners in a year, newly-published accounts have revealed. The ceasing of operations in Russia cost it £22m, the accounts show. 

The LLP’s annual report – covering the year to 31 December 2022 and published this week – shows that profit before tax fell from £78m to £29m. Revenue also dropped by 11% to £204m.

Analysed by region, revenue from the UK market dropped slightly to £188m and rose in Asia Pacific to £2.9m, but in Europe, Middle East and Africa revenue nosedived from £33m to £13m.

Most of the revenue loss in Europe is accounted for by the cessation of operations in Russia due to the conflict in Ukraine. From making a six-figure profit in the country in 2021, BCLP lost £22m last year through the Moscow departure.

Directors did not refer to the profit or revenue drops in the annual report, commenting tonly hat the financial position at the end of last year was ‘satisfactory’.

The average number of fee earners during the year fell by 19% to 440, while staff numbers overall reduced from over 1,000 to 878. Despite this, staff costs rose from £99m to £108m.

BCLP was set up after partners at Berwin Leighton Paiser and US firm Bryan Cave approved a merger in February 2018.

A spokesperson for the firm said performance in the UK this year has been ’resilient, with strong cash collections’. The firm has invested in growth in 2023, promoting nine London lawyers to the partnership and making seven UK lateral partner hires.

She added: ’The firm’s 2022 UK LLP accounts were impacted by very significant exceptional costs, notably the entire cost of the firm’s withdrawal from Russia is reflected in these LLP accounts. Wage inflation and firm investments were also factors.

’Globally, in 2022 we delivered a resilient performance thanks to the balance of our global platform, strong sector mandates along with our strength in litigation, and strategic counsel for long-time clients. Excluding the closure of Moscow and adjusting revenue on a constant currency basis, BCLP’s business grew by 2% in 2022 and the firm had its second-best year for profitability.’

 

This article is now closed for comment.