Hogan Lovells' international partnership is anticipating an increase in revenues of up to £40m a year from legacy Hogan & Hartson's operations outside of the US, according to the firm's limited liability partnership (LLP) accounts.

The 2009-10 accounts, recently filed with Companies House, cover the activities of legacy Lovells outside of the US – now Hogan Lovells International LLP.

Hogan Lovells maintains two separate profit pools and accounting years, with most operations outside North and South America housed within Hogan Lovells International.

In addition to revealing the expected £30m-£40m annual gain from legacy Hogan's operations outside North and South America, the accounts also highlight £18.5m in losses as a result of the closure of legacy Lovells' Chicago office and the transfer of most of the assets used in New York and Chicago to Hogan & Hartson.

Around half of the £18.5m is understood to be attributable to the closure of the two offices, with the remainder due to the transfer of assets to the merged firm.

The accounts show that overall revenues for the international LLP grew by around 1.7% from £511m to £520m. Broken down by region, Asia and the Middle East accounted for £52.4m (10% of total revenue), continental Europe £231.4m (43%), London £234.4m (43%) and the US £23.6m (4%).

According to the accounts, the results were underpinned by a strong performance in London, while continental Europe saw a weaker performance than in previous years.

Looking at revenues by practice, corporate achieved nearly one third (30%) of total billings, commerce and real estate accounted for 27%, with dispute resolution and finance accounting for 24% and 20% respectively.
Staff costs decreased by nearly 2% from £229m to £225m, while profit before tax increased from £155.2m to £164.5m – a rise of 6%.

Hogan Lovells joint co-chief executive David Harris (pictured) said: "During the 2009-10 financial year, cost savings and cash management were key areas of focus. During the latter part of the financial year, we started to see a gradual improvement in economic performance although, in many markets in which we operate, that confidence remains relatively fragile and vulnerable to changes in market sentiment."