A transatlantic combination appears to have paid off for former magic circle outfit Allen & Overy and New York firm Shearman & Sterling. In its second set of financial results since its creation in 2024, A&O Shearman today announced profit before tax up 14% to £1.2 billion in the year to 30 April, despite turnover slipping by 3% to £2.8bn.
Profit per equity partner rose by 12% to £2.2m. The overall profit ratio of 43% is likely to provide ammunition to advocates for a levy on City firms to fund legal aid.
'Two years on from the merger, the firm is more profitable, more focused, and advising on a greater share of its clients’ most significant matters,' the firm said. The results reflect a period of ‘deliberate reshaping’ to create a 'nimbler and differently shaped' business.
'These results show our strategy taking hold,' said Hervé Ekué, global managing partner. 'Clients are entrusting us with more of their most important and complex mandates. Combined with the way we have streamlined our operation, our profitability has grown significantly. We are a more profitable firm, with a stronger base for sustainable growth.'
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