Herbert Smith sees PEP return to 2006-07 levels as turnover nudges up

Herbert Smith has posted a 3 per cent increase in turnover and a 7 per cent drop in average profit per equity partner (PEP) for the 2011-12 financial year.

Revenue for the year rose to £480m, up from £465.1m last year, with equity partners enduring a fall in PEP from £900,000 in 2010-11 to £840,000.

The City firm’s net also profit decreased by 7 per cent, from £117.9m to £109.7m – its lowest level in five years, although turnover has reached a five-year peak.

PEP is also at a five-year trough, with the figure now 19 per cent down on the PEP of £1.036m in 2007-08, standing at its lowest level since its £820,000 figure in 2006-07.

The firm’s revenue grew by 3 per cent in 2010-11, with PEP up 4 per cent on the previous year.

The news comes amid a reshaping at the silver circle outfit, with the firm cutting 43.5 jobs in London (12 June 2012) as it enters advanced negotiations over a merger with Australia’s Freehills (21 June 2012).

It has also announced five support-staff redundancies in Dubai (22 May 2012).