Ashurst has announced a 10% hike in profit per equity partner (PEP) to £743,000 for 2017-18, on the back of a 4% increase in revenue from £541m to £564m.

Managing partner Paul Jenkins described the firm's performance as strong and said that core practices in the UK, as well as the entire Australia and Greater China practices, achieved double-digit growth during the year.

He also highlighted the performance of Ashurst's Germany practice, pointing out that the firm expects to grow headcount in Munich and Frankfurt.

He said: "Our growth has been aided by our sectoral focus on five areas: banks and funds, digital economy, energy and resources, infrastructure and real estate. We've focused our lateral recruitment on hires with strength in those areas, which has really paid off."

Explaining the increase in PEP, Jan Gooze-Zijl, Ashurst's chief financial and operations officer, said: "We've managed our cost base more, which has helped our PEP growth. It's about articulating to our partners what's important in terms of client focus and driving a culture which rewards both individual and collective performances, particularly encouraging cross-referrals."

During the 2017-18 financial year, Ashurst sealed a tie-up in Shanghai with Guantao, established a formal law alliance with ADTLaw in Singapore, and brought in 31 lateral hires globally.

As early results for 2017-18 come in, Ashurst's revenue increase is the smallest so far announced by a UK top 50 law firm. Earlier this week, Simmons & Simmons posted revenue growth of 12%, while Pinsent Masons has recorded a 6% turnover rise, with Taylor Wessing, Osborne Clarke and Fieldfisher all announcing double-digit hikes.

Last year, Ashurst put in a strong financial performance after a bad run that saw PEP plummet by almost 20% in 2015-16 and revenue fall by 10%. The firm subsequently revamped its lockstep in 2016, extending the top of the equity ladder in a bid to retain star performers, following the poor financial results and a spate of exits. Partners at Ashurst have credited Jenkins with stabilising the firm's financial performance since then.

Last week (22 June), Ashurst confirmed plans to open a Luxembourg office later this year.