More firms see profits climb in latest financial results

HSF, Kingsley Napley and Mills & Reeve

Herbert Smith Freehills (HSF) is one of the latest law firms to publish its financial results, showing significant increases in both revenues and partner profits.

The Silver Circle giant saw its profits climb 14.5% to £444.5 million for the year ending 30 April, while revenues reached £1.3 billion, an increase of over 10% compared to the previous year.

The firm’s profit per equity partner (PEP) saw a substantial increase of 12.1%, reaching £1.31 million.

These strong figures come just a couple of weeks after the firm increased salaries for its newly qualified associates from £120,000 to £135,000, following similar rises by its City rivals.

Commenting on the results, which mark the firm’s 11th consecutive year of revenue growth, chief executive Justin D’Agostino said:

“Our focus on our clients, core practices and priority sectors keep us in the leading pack of international law firms. In particular, our twin-engines of transactional and contentious expertise drive our business forward, as clients continue to turn to us for their landmark deals and most complex disputes.”

Meanwhile, Kingsley Napley reported strong results, with turnover increasing by 17% to a record £71.8 million and total profit surging by 56% to £22.5 million. PEP also saw a significant rise, growing from £225,000 to £466,000.

“This year’s tremendous results have exceeded our forecasts and show our strategy is working,” said managing partner Linda Woolley. “This year’s tremendous results have exceeded our forecasts and show our strategy is working. We saw increased revenues in all areas of our business in the last financial year. Our criminal litigation, dispute resolution, immigration, family & divorce, public law and regulatory practice areas performed particularly well.”

She continued: “We have broadened our service offering in the last 18 months adding new capabilities in tax, IP disputes and international arbitration, for example. Our new restructuring & insolvency team has been a notably strong revenue contributor already. I am confident we will continue on a positive trajectory with the new Labour government expected to usher in a busy period of activity for our corporate, government and HNW clients.”

The positive results continued with national law firm Mills & Reeve, which saw a 14.1% increase in turnover to £168 million, leading to a record staff bonus pool of £3 million. The firm didn’t disclose its profit or PEP figures.

“It’s been a year of significant strategic investments, including the addition of 22 new partners to the firm and a new Birmingham office,” commented managing partner Claire Clarke. “These developments not only contribute to the firm’s growth but also reinforce our commitment to providing an exceptional environment for our people.”