Dentons UK, Middle East and Africa arm's PEP rises sharply
UK, Middle East and Africa figures reveal profit increased as the firm's balance sheet moves back into the black
May 20, 2015 at 12:35 PM
2 minute read
Profit per equity partner (PEP) at Dentons' UK, Middle East and Africa limited liability partnership (LLP) jumped by 23% in the 2014-15 financial year, according to figures seen by Legal Week.
PEP last financial year was £502,000, up from £407,000 in 2013-14.
Chief executive Elliott Portnoy and chairman Joe Andrew have previously called global PEP a "meaningless" metric for a firm. In a letter to the American Lawyer last year, they also claimed that it could be damaging to client relations.
According to the figures, revenue at the regional arm of the global firm rose by 6% to £155m in 2014-15.
The numbers show that Dentons made a net profit of £34m, an 18% increase on £28.7m last year, after it held costs flat "apart from investment in lateral hires and building the global firm".
The firm said fees per fee earner improved by 7%, which it claimed was a sign of an improvement in productivity.
In the UK revenue growth was led by a rise in revenue at the firm's banking, technology, media and telecommunications, and real estate practices. Meanwhile, Dentons said its Middle East offices achieved "double-digit [revenue] growth".
The firm added that 'client collections' at the UKMEA LLP were 11% (£15.1m) up on the previous year, which helped to improve the region's balance sheet to a net positive cash balance of £4.2m compared with net borrowings last year of £7.3m.
In March London partner Jeremy Cohen succeeded Matthew Jones as UKMEA chief executive.
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