Herbert Smith has unveiled a record-breaking financial year, with profits per equity partner (PEP) smashing the 1 million pound barrier on the back of a 25 percent surge in turnover.
Revenue at the U.K. heavyweight jumped by a quarter, from 324 million pounds ($630.8 million) in 2006-07 to 417.5 million pounds ($812.9 million) for the most recent financial year.
PEP, meanwhile, also grew by 25 percent from 820,000 pounds to 1.02 million pounds ($2 million), making Herbert Smith just the seventh firm in the Legal Week Top 50 to break the 1 million pound barrier alongside the Magic Circle giants and rival London firm Macfarlanes.
The results represent a major turnaround from last year’s performance, when Herbert Smith saw PEP dip by 2.5 percent against a rise of 12.8 percent in total revenue.
A spokesperson for them firm confirmed that all practice areas comfortably exceeded their target revenues, while Dubai was singled out as a strong performer in the first year since the office’s launch. Moscow and Southeast Asia were also cited as having performed well on the international stage.
News of the record profits and turnover comes after Herbert Smith announced on April 30 that it was freezing its associate salaries at last year’s levels.
Meanwhile, Norton Rose Tuesday posted a 23 percent rise in turnover for 2007-08, jumping up to 297 million pounds ($578.2 million). PEP at the top 10 City firm has yet to be announced.