Results from UK's big four see A&O shake up established order

Linklaters and Freshfields Bruckhaus Deringer have both today (6 July) announced their 2011-12 financial results, with the figures confirming that Freshfields will drop behind magic circle rival Allen & Overy (A&O) in the UK top 50 rankings for the first time.

Linklaters has posted marginal increases in both turnover and profits per equity partner (PEP), with revenues rising by 0.6% to £1.207bn and PEP growing by 1.5% to £1.243m. The firm's equity spread ranges from £626,000 to a high of £1.565m.

The firm's London revenues contributed 43% of overall income, while its Continental European offices took in 37% of the total figure. The remaining 20% was shared between Asia and the Middle East (13%) and the Americas (7%)

Notably, Linklaters' corporate revenues dropped by 2% from £475.3m to £464.8m, with finance revenues increasing by marginally more at 3% to £484m, putting finance ahead of corporate.

The figures reflect the firm's most recent partnership restructuring, which saw a number of corporate partners leave, as well as turbulence in the wider global corporate M&A markets.

Linklaters managing partner Simon Davies (pictured) told Legal Week: "We have continued to face volatile and challenging conditions amid wider economic strains. Despite this, we have sustained revenues in the developed markets, supported by strong performances in litigation, competition and regulation."

Freshfields has seen both turnover and PEP fall marginally this year, with revenue dropping to £1.139bn, against a 1% PEP decrease to £1.299m. The drop marks the third consecutive year that PEP has fallen from a 2008-09 high of £1.443m. However, the firm still boasts the highest PEP figure of the UK's four largest firms.

Managing partner Ted Burke commented: "We think we've had a good year considering what's been going on around the world. We have no radical growth plans for the next year and believe in sticking with our current model of opportunistic but considered growth."

The results will see Freshfields place fourth in this year's UK top 50 rankings, after A&O this week posted a 6% turnover increase to £1.182bn, while the firm's PEP remained static at £1.1m.

Clifford Chance also unveiled its results this week, with both revenue and PEP rising by 7% to £1.303bn and £1.078m respectively, confirming the firm's position as the UK's largest in revenue terms.

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