FOR Clifford Chance, 2005-06 was a breakthrough year. Top of equity was up from £710,000 to £920,000, while profit per equity partner (PEP) increased by 24 per cent to £810,000, up from £651,000 the previous year, taking it to 24th in the profit table. This performance came on the back of a 13 per cent rise in revenue from £914m to break through the £1bn mark.

In the US Clifford Chance showed signs of turning New York around. The office increased turnover by a marginal 2.5 per cent to £142m, although the average profit per point of £7,000 was still far shy of the £9,100 global average.

In the UK things began to motor, with former chief operating officer (COO), now global managing partner, David Childs at the helm. His ferocious examination of costs resulted in savings of £40m, or some £100,000 per equity partner. Around 300 business support jobs were axed in the year to May 2006, with the trend set to continue into 2006-07.

Corporate and banking were the biggest departments globally. Banking, the traditional engine of the firm, generates an impressive 40 per cent profit margin, while corporate is on the verge of breaking out of its private equity stronghold into big-ticket cross-border M&A. Litigation dropped its share of total revenues in line with its streamlining in the US.

As usual London was Clifford Chance’s most successful office, turning over £456m, up by 13.4 per cent from £402m the previous year and averaging £12,600 profit per point. Continental Europe also improved across the board, turning over £345m, with Germany (£117m) and Spain (£28m) putting in strong performances.

But the Netherlands reported the most impressive
growth, increasing turnover by a staggering 167 per cent
to £56.78m. The firm also capitalised on the strong
Asian markets, increasing turnover by 10 per cent to
£70.4m, driven largely by 25 per cent growth in China.