Herbert Smith Freehills unveils post-merger results as PEP dips by 11%
Herbert Smith Freehills has posted a post-merger revenue figure of £471.2m for the seven months from October 2012 - April 2013. The seven-month figure extrapolated over 12 months equates to a 12-month total of just over £800m, meaning the revenues are broadly flat on the combined total of legacy Herbert Smith's 2011-12 turnover and Australia's Freehills' 2011 income.
July 17, 2013 at 10:54 AM
2 minute read
Herbert Smith Freehills (HSF) has reported post-merger revenues of £471.2m for the seven months from October 2012 to April this year.
The seven-month figure extrapolated over 12 months equates to a 12-month total of just over £800m, meaning the revenues are broadly flat on the combined total of legacy Herbert Smith's 2011-12 turnover and Australia's Freehills' 2011 income.
Meanwhile, as reported by Legal Week in June, profits per equity partner (PEP) have fallen by around £100,000, down from £840,000 to £744,000 – a drop of 11%. The firm attributed the fall in PEP to the merger.
Both firms are currently paying partners according to two different pay structures; however, partners are expecting to receive proposals on the planned move to a single modified lockstep after the summer, as the firm gears up to introduce a combined partner remuneration structure from the start of the next financial year.
The firm cited its disputes and competition, regulation and trade practices as particularly strong performers in the wake of the merger.
The combined firm now has a total of 450 partners, including 316 equity partners. Over the course of the year it opened offices in Frankfurt, Berlin and Seoul, as well as securing a New York launch in September 2012.
Joint CEO David Willis (pictured) said: "We are hoping that the market becomes an easier one next year so that profits can go up, but increasing pressure from clients on fees this year has remained.
"Disputes and competition has been the most profitable and the finance, real estate and tax practice has improved the most. London has also performed well in terms of tranactional activity, since January this year. We are cautiously optimistic for that to be maintained. Economic indications show that we are set to grow rather than dip back."
Legacy Herbert Smith's 2011-12 results saw a 3% increase in revenue from £465m against a drop in partner profits of 6% from £892,000.
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