Allen & Overy (A&O) has become the second magic circle firm to release its financial results for 2013-14, reporting a 7% rise in profit per equity partner (PEP) to £1.12m.

The rise in PEP, up from last year's figure of £1.05m, matches the 7% increase in pre-tax profits, which broke the £500m mark for the first time.

Revenue growth was more modest, up 2% to £1.23bn.

The firm put the results down to an increase in activity in its banking and litigation practices, driving strong performance in A&O's Germany, London, Luxembourg, Singapore and UAE offices in particular.

Global managing partner Wim Dejonghe (pictured) told Legal Week: "We are continuing to move in the right direction, taking a long term view to follow new clients in new markets.

"We have strong competitors and they deliver strong results. My job is to make sure ours are strong too."

Dejonghe also said that after two years in operation, A&O's Belfast support services centre was starting to deliver cost savings.

A&O became the first magic circle firm to enter Myanmar with the launch of its Yangon office in May, taking their total number of offices to 43. It also opened one more office after the end of the financial year – in Barcelona last week – lead by former Freshfields Bruckhaus Deringer corporate partner Toni Valverde. The firm has further plans to open in Toronto.

"We do expand carefully," said Dejonghe. "We pace it and make sure the people we recruit are the best in the market. Most of the partners we have recruited we have known for many years."

Since 2010, A&O has taken on an extra 75 partners, with the firmwide total rising by one to 526 last year. Multi-jurisdictional work also grew last year; nearly 70% of A&O's work now involves two offices or more, with a quarter involving five countries or more.

Equity partner headcount increased by two to 444 during the year.

Fellow magic circle firm Clifford Chance posted its results yesterday, with revenue hitting a record high of £1.36bn and PEP, up by 16%. Linklaters and Freshfields are due to report in the coming week.

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