A&O sees turnover creep up with PEP static; top earner takes £1.57m
Allen & Overy (A&O) has posted static turnover and profits per equity partner (PEP) figures for the 2012-13 financial year. A&O, which has become the first of the magic circle firms to announce its financial results this year, has seen turnover rise marginally to £1.19bn, up on £1.18bn in 2011-12, while PEP stayed broadly flat at £1.1m, compared with the £1.2m figure recorded last year.
July 03, 2013 at 07:03 PM
3 minute read
Allen & Overy (A&O) has become the first magic circle to announce its 2012-13 financial results, posting a marginal increase in turnover and static profits per equity partner (PEP).
The firm saw turnover rise by 0.6% to £1.19bn, up on £1.183bn in 2011-12, while PEP was flat at £1.1m, the same figure the firm recorded last year.
Including other income of £22.9m, the firm's total revenue now stands at £1.212bn.
This year's profit distribution range for equity partners runs from £627,000 for those with 20 points at the bottom to £1,566,000 for those with 50 points at the top. Both points are down slightly on last year, when the bottom and top of the equity stood at £640,000 and £1,601,000 respectively.
As a consequence, the highest earner at the firm last year took home £1,566,000, down 2% on the 2011-12 figure of £1,601,000.
The firm cited strong performances in Central and Eastern Europe, Southeast Asia and Morocco, as well as Germany, Japan, London and the Middle East.
A&O managing partner Wim Dejonghe (pictured) said: "We have focused on consolidating the investments we've made over the past five years in FY13, which has seen them perform better than against business plan. They have also played an important role in the continued growth we've seen in the volume of our cross-border work.
"We're in pretty good shape at the moment. We've managed to grow our profits through both counter-cyclical investment and our focus on financial and operation discipline. We are also looking at how we can provide more efficient services for our clients, including through our new legal services centre in Belfast. Our long-term strategy is paying off."
Dejonghe cited the firm's litigation and banking practices as standout performers, noting that capital markets activity also picked up at the latter end of the financial year.
This year's results account for A&O's launches in Hanoi and Ho Chi Minh City last year and Istanbul in 2011. Over the past five years the firm's turnover has grown by 9% and profit by 15%, while the partnership has grown 7%. The firm launched a total of 14 offices in 11 countries in the same stretch of time.
Staff costs at the firm fell to £439m during the year while profit before tax rose to £496.7m, marking a 2% decrease and increase respectively.
The firm promoted 19 lawyers internally and made 18 lateral partner hires during the past year, with average total partner count for 2012-13 rising 3% to 525.
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