Profits per equity partner at international firm Hogan Lovells remained flat last year on a 6% increase in turnover, according to figures released today.
In the year ending 31 December the firm’s revenue increased from $1.82bn (£1.45bn) in 2015 to $1.92bn (£1.53bn), a 5.7% increase. Profit per equity partner was $1.252m (£924,000) compared to $1.250m (£817,000) in 2015. Globally, this equated to a 0.2% rise. However, because of currency fluctuations, UK partners enjoyed a 13% rise.
The firm said it pays in local currency but that fluctuations are 'ironed out'. Measured in sterling, the firm’s overall revenue increased by 20% from £1.19bn in 2015 to £1.420bn in 2016.
According to the firm, the ‘clear impact’ of currency exchange rates can be clearly seen. Had exchange rates remained constant, the firm says it would have seen an overall revenue increase of 7.9%.
The firm used the average exchange rate of £1 = $1.36. For 2015 the exchange rate was £1 = $1.53.
London and continental Europe accounted for 41% of the firm’s total billings.
Across the firm’s five practice groups, corporate represented approximately 32% of total billings. Intellectual property media and technology accounted for 10% of overall revenue.
Steve Immelt, Hogan Lovells chief executive, said: ‘2016 saw us deliver a solid performance and we achieved growth of 4.9% in our billable hours compared to 2015, reflecting good levels of demand in a relatively flat and uncertain market for legal services.’