Hogan Lovells’ international arm saw its net profit fall by nearly 10 per cent to £175.4m in 2014/15, while the firm’s revenue dipped below £600m, LLP accounts for its offices outside the Americas revealed.
The total profit available for equity partners also fell 10 per cent from £163.3m to £146.9m, while profit per equity partner (PEP) dropped from £785,000 to £698,000.
The drop in profits is down to a decrease in revenue and increased operating expenses. Revenue fell 2 per cent from £604 to £591m last year, although the firm claimed turnover rose by 1 per cent if the declining value of the Euro relative to sterling was removed.
Meanwhile staff costs increased from £251m to £253m, with the largest jump attributable to pension costs increasing dramatically from £702,000 to £7.9m.
Salaries fell from £222.7m to £220m as the number of fee earners dipped and support staff numbers grew. A total of 1,531 fee-earners worked at Hogan Lovells in 2014/15, compared to 1,567 last year, and support staff numbers increased from 1,483 to 1,503.
Hogan Lovells continues to have a positive cash flow, although net cash dropped over 2014/15 from £72.6m to £23.7m.