HFW Reverses Fortunes With Revenue and Profits Rebound
The firm has posted double-digit PEP growth and strong revenue increases.
July 23, 2020 at 07:03 PM
3 minute read
HFW revenue and profits grew strongly in the 2019/20 financial year, a turnaround from falls in last year's results.
The firm has boosted its topline by nearly 10% to £195.2 million, up from £178.9 million last year. Meanwhile profits also grew by the same amount, reaching £47.3 million for the year, according to a statement by the firm.
Profit per equity partner (PEP) was the fastest growing metric, increasing by 11% to reach £526,000. The firm also noted that revenue and profit per lawyer both rose by nearly 7% to £389,000 and £94,000 respectively.
The gains are a turnaround from last year's results, when the firm posted a profit and PEP decline of 9% and 11% respectively.
Reflecting on the most recent growth, HFW senior partner Richard Crump said: "To a certain extent the figures speak for themselves – we have laid down some investments over the past two or three years, obviously including quite a few international office openings.
"Those do take time to bed in and get critical mass into those offices to generate the revenue to defray the upfront costs, and I think in the last financial years that's begun to bear fruit."
HFW has completed 11 international office openings, including mergers and associations since 2016. The most recent was in August last year, where the firm opened a Monaco office with a team from Ince, and another in Abu Dhabi in 2018.
In a statement, the firm added that its global construction practice had grown revenues by 20%, while aerospace and shipping also gre by 13% and 12% respectively.
Additionally, eight of its offices including three in the MIddle East – Abu Dhabi, Kuwait City, and Riyadh – increased revenues by over 15%.
In relation to the COVID-19, HFW managing partner Jeremy Shebson said that it was "too early to say" what the impact would be on the business.
Shebson said: "We've had one quarter and so far it's been encouraging in the sense that there's been some good, positive momentum off the back of last year."
Shebson also said that the firm was assessing opportunities to grow its international network, focusing on areas where the firm already has a presence.
HFW's results buck the prevailing trend seen elsewhere in the industry of slower growth and falling profits. Linklaters, Ashurst and Allen & Overy profits all fell during the year, while Dentons revenue declined in its U.K. and Middle East operations.
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