Herbert Smith Freehills (HSF) has announced a 12% increase in profit per equity (PEP) for 2017-18, with revenues remaining flat on last year.

PEP has jumped from £760,000 to £852,000, with equity partner numbers falling by 12 during the year from 337 to 325.

Meanwhile, revenue crept up by less than 1% from £920.5m to £926.8m. The Anglo-Australian firm has also posted profit of £277.2m, up by more than 8% from £256.1m the previous financial year.

HSF global CEO Mark Rigotti told Legal Week that the firm's continental European offices had a particularly strong year, with its Paris office profits up 70% and turnover in its Madrid base doubling.

He added that the firm's corporate practice had performed particularly well during the year, having acted on 120 cross-border deals with a combined value of more than $2bn.

However, he conceded that London and Middle East revenues were lower than the firm had hoped for.

"London revenues were a little smaller this year, and the Middle East market has been tough," he said. "Our real estate practice had a slower start during the first half of last year, so its net result is probably a little bit less too."

Last year HSF launched an office in Milan and made a number of lateral hires globally, including teams from Pinsent Masons in China and an asset finance group from Watson Farley & Williams across London and Singapore.

HSF's chief financial officer Steve Bowers said that a continued shift to improving efficiencies at the firm had also been a contributing factor to the increased profits. Last year the firm standardised its global operating system, which Bowers said is expected to improve fee earner productivity, workflow and client connections.