Revenue rose, but profits fell amid the pandemic crisis, the firm said.

Allen & Overy has posted a decline in profits and average profit per equity partner in its results announcement for the last financial year.

The figures — the first to be released by a top U.K. firm so far this reporting season — show A&O increased its global revenue by 4% in the financial year ending in April 2020 to reach £1.69 billion. But its profits dipped by 2.5% to hit £690 million, while profit per equity partner also fell 1.7% to £1.63 million.

The results suggest even large law firms are set for a difficult period amid the pandemic crisis.

A&O managing partner Gareth Price, who took up the role at the end of the 2019/20 FY, said that the firm had "fired on all cylinders" for the first 10 months of the financial year, before seeing the impact of the COVID-19 crisis in March and April.

He added: "Our previous year's results helped to put us in the best place when it came to dealing with the impact of COVID-19. We're in a strong position to continue doing what we want to do, which is achieving global reach and depth."

That aim includes continuing to build its U.S. presence, according to Price, who described those ambitions as "undimmed."

News surrounding the firm was dominated during the year by its merger talks with U.S. firm O'Melveny & Myers. Talks came to an end in September 2019, but A&O has added incrementally to its bases in the U.S. since then, and it extended the lease on its New York office in May 2020.

Price said the firm is continuing to review any significant growth opportunities in the U.S. and that it is in "a strong position" to take advantage of any that arise, as well as to build with individual hires.

The firm took swift action as the coronavirus pandemic ramped up globally in 2020, including holding a cash call. According to global financial and operations director Jason Haines, around half of that cash has now been collected from partners, with the remaining half due to be collected within the next fortnight.

The firm also reduced its partner drawings as a result of the COVID-19 impact, which will remain trimmed for the forseeable future.

The firm also split bonuses into two payments, with the first still set to be paid out in July and the second in October.

The firm's statement highlighted its U.S. and European arms as having achieved 'stand out' financial performances in the year, and said that its legal services arm had boosted its revenue by 15%. During the year, the firm grew its graduate intake in its flag-ship legal services centre in Belfast.

The firm's global footprint remained stable during the financial year. It shut its Qatar office but launched a joint operation with Chinese law firm Lang Yue at the start of 2020, allowing A&O to access Chinese law advice.

Earlier in 2020 the firm began reviewing its London office space, with the possibility of an eventual move from its Spitalfields base on the table.

Price said that while the impact of COVID-19 on its bases and people is still hard to predict, he expects the firm will see an increase in its people working from home and travelling less, and as a result A&O will "look at how much real estate it needs."

He added that one "small silver lining" of the crisis is that he hopes lessons can be learned about how best to support those for who working from home is helpful, "particularly young principal carers".

In February 2020, the firm updated its parental leave policies, including increasing paternity leave from two to 12 weeks in its U.K. and UAE bases.

Other steps taken by the firm during the 2019-20 financial year to improve a variety of its diversity and inclusion policies included appointing five regional diversity and inclusion partners and rolling out new mental health training.

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