DLA Piper

DLA Piper's international arm more than doubled its borrowing in the financial year to April 2019 while revenue neared £1 billion ($1.3 billion), its newly-filed limited liability partnership accounts show.

Borrowing hit £67.2 million ($87.6 million) at the firm's international entity, which comprises countries outside the U.S., Canada, South America and the Nordic region. The firm attributed the increase to continued investment in the business, including the move of its London office to new premises and investment in the firm's IT systems.

According to the accounts, overall revenues for the firm's international business surpassed the £1 billion ($1.3 billion) during the most last financial year. However, £105.6 million ($137.6 million) of that figure relates to fee disbursements – bills paid on behalf of clients – taking the total turnover figure to just below the £1 billion ($1.3 billion) threshold.

Operating profit, meanwhile, increased by 9% to reach £346.3 million ($451.2 million).

The firm's Australian business saw the largest inflation in revenues in 2019, with revenues for the region rising by 26% to hit £112 million ($146 million). Meanwhile, turnover for the Middle East, Africa and Europe arm and the Asia arm each rose by 19%. The U.K. arm saw the smallest revenue growth by jurisdiction, rising by 15%.

However, the regional percentage increases were affected by fee disbursements, which were not taken into account in the previous financial year. In the like-for-like figures, Continental Europe saw the biggest growth.

DLA Piper finance director Claire Chellam told Law.com International that the firm's practices in Germany, Italy and the Netherlands had performed well during the year. She added that the firm also increased its average billing rate during the year.

Staff costs at the firm increased by 5% to hit £347.1 million ($452.3 million).

Pay for the firm's combined top management team, which includes global co-chair Simon Levine and senior partner Andrew Darwin, grew by 9% in 2019 to £48 million ($62.5 million).

Addleshaws

DLA is not the only firm to have filed its latest LLP accounts. At U.K. firm Addleshaw Goddard operating profit soared 22% to £102 million ($132.9 million) in the year ended in April 2019, according to the accounts for the firm's U.K. offices, as well as its Singapore branch.

The filing from Companies House shows that the firm's turnover for the year ended in April 2019 grew by 13.4% to hit £263.5 million ($343.3 million).

The firm has no bank debt but the amount it owes to creditors rose 13% to £58.1 million ($75.7 million), the accounts show. However, its net position has improved as the firm has increased its cash reserves in the bank by 74% from £56.6 million ($73.7 million).

The LLP's profit available for distribution amongst partners rose 32% to a total of £52.4 million ($68.2 million). Its average number of partners in the financial year rose to 227 from 216.

The highest paid partner took home a 13% profit share increase, boosting their remuneration to £1.2 million ($1.6 million).

The growth follows the firm's record top-line growth reported in 2017-18 after the firm's merger with Scottish firm HBJ Gateley in June 2017.

The firm's staff costs also jumped 13% to reach £91.8 million ($119.6 million) as it added, on average, 115 employees in that year – including an average of 69 fee earners and 46 support staff – boosting the average number of employees to a total of 1,484.