The pandemic has not unduly hit the results of the Magic Circle law firms, with both Allen & Overy and Linklaters showing good – if not spectacular – results in the face of the COVID-19 pandemic. Yet the overall results show a remarkably robust reaction to the pandemic by the major law firms.
Linklaters confirmed its revenues for the 2019/20 year as up by 0.7 per cent, rising to £1.64 billion with a pre-tax profit at £726.9 million, with profit per equity partner down by just over 5 per cent to £1.612 million.
The previous year had seen a strong growth in revenues for Linklaters with growth of 7 per cent, but profitable work continues for the Big Law firms, including the strong US-based firms operating in London also.
Allen & Overy have shown a 4 per cent increase in revenues to £1.69 billion, placing it just ahead of Linklaters, although as with Linklaters the A&O result showed a slight decline in profits per equity partner (PEP) declining by 1.7 per cent to £1.63 million.
In an issued statement reported by Legal Business, managing partner Gideon Moore said: ‘Covid-19 came at the tail end of what was a strong year for us. Notwithstanding the change in circumstances arising as a result of Covid-19, we have been able to continue to support our people and our clients. Our long-term strategy remains unchanged: investing in our globally diverse talent base and growing our practices sustainably to best serve our clients.’
A&O’s global managing partner Gareth Price said: “These are strong results, with revenue growth in all our global practices, proving the success of the broad-based strategy we have followed over the last decade. The combination of the widest international network of our peers, genuine local insight and a market-leading position in use of technology and alternative client services is increasingly compelling to our global client base.”
The major law firms have proven robust in the face of the pandemic with strong growth in revenues in Europe and the US. The Asian markets appear to be returning back to normal with equally confidence growth also in the Middle East markets.
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