Herbies’ profit smashes £1m per partner

Herbies' profit smashes £1m per partnerHerbert Smith has recovered from its poor 2006-07 financial performance with its average profit per equity partner (PEP) figure breaking the £1m barrier for the first time.

Over the 12 months to the end of April the firm’s revenue and PEP figures both jumped 25 per cent to total £418m and £1.03m. this is a marked improvement on last year when the firm’s PEP figure dropped 2 per cent to £820,000 while revenues rose 12.8 per cent to £334m.

A spokesman for the firm said: “Finance and litigation have seen particularly strong revenue growth over the year while real estate, which had one less partner following the departure of Chris de Pury, saw revenues per partner rise to over £2m.

“In terms of international offices Moscow did particularly well, Dubai was profitable in its first year and South East Asia is booming as well.”

Revenues in the firm’s corporate practice were in line with the overall 25 per cent figure with finance and litigation both exceeding this rate of growth.

The news comes less than two weeks after Herbert Smith decided to freeze trainee and associate salary bands at 2007 levels as a result of the current business climate (www.thelawyer.com 30 April.)

The spokesman said: “The decision not to raise salaries was based on the thinking that there is going to be a difficult and uncertain market over the next 12 months.

“We will keep salaries under review and see how the market develops. We have the option to review them at the six month stage.”