Linklaters.gif” alt=”Linklaters’ PEP knocks Freshfields out of place” />Linklaters has ousted its magic circle rival Freshfields Bruckhaus Deringer from second place in The Lawyer UK 100. A revision of Linklaters’ financial figures reveals that profit has increased by a staggering 25 per cent and turnover is up 12 per cent to £805m, while Freshfields’ turnover dropped to £785m.
Managing partner Tony Angel told The Lawyer that Linklaters’ final figures for the 2004-05 financial year show that average profit per equity partner (PEP) had reached £845,000, up from £674,000 the previous year.
The updated figure increases the firm’s PEP by a further £27,000 from its original estimate of £818,000, which was announced in May. However, the PEP figure is understood to be prior to exceptional charges.
As a result, partners at the top of equity will receive just over £1m compared with last year’s £864,000.
The revised numbers means that the firm has smashed its budget by 15 per cent. As a result, Linklaters will increase its assistants’ salaries by 2 per cent across the board and offer all staff a profit-related bonus of £1,700.
Linklaters first reported an estimated 22 per cent rise in PEP in May; however, this has been adjusted upwards following a strong second half of the year assisted in particular by the resurgent corporate department.
The strong results mean that Linklaters has forced Freshfields down The Lawyer UK 100 table based on turnover and PEP, after its magic circle competitor reported indifferent results for 2004/05.
As revealed on www.the lawyer.com on 10 June, Freshfields’ PEP increased marginally to £700,000, up from £675,000. However, the firm’s turnover dipped 0.6 per cent to £780m, down from £785m.