Dentons has become the latest international firm to report sharply increased profits in what is turning into a bumper annual results season.
In the year to 30 April net profit in the global firm’s UK, Middle East and Africa operation climbed 18% to £34m, on revenues up 6% to £155m. Profit per equity partner rose 23% to £502,000, representing an increase of 52% in the last two years.
Last month Dentons announced a merger with US firm McKenna Long & Aldridge, 18 months after previous talks on a potential tie-up failed. This alliance built on Dentons’ landmark deal in January with China’s largest law firm Dacheng, which created the biggest legal practice in the world by headcount.
In the UK revenue growth in 2014/15 was led by the firm’s banking, technology media and telecommunications, and real estate practices, while the Middle East offices achieved double-digit growth. Costs were flat year on year, the firm said, apart from investment in lateral hires and building the global firm.
Productivity improved significantly, with fees per fee-earner improving by 7%. Client collections were 11% (£15.1m) up on the previous year, helping the region close with a net positive cash balance of £4.2m, compared with net borrowings last time of £7.3m.
View the full financial results table.