Salans is set to double its average profit per equity partner (PEP) to more than £850,000 after a record year in which revenue was boosted by more than a third to hit an estimated $280m (£143m).
The firm, which reports on a calendar year, managed to hike its turnover by $73m (£37m), or 35 per cent. At the same time Salans’ profit margin was up to 36 per cent from 22 per cent the year before, meaning the firm made just more than $100m (£51.1m) in profit.
With 59 equity partners, the estimated average PEP stands at a huge $1.7m (£870,000), more than double last year’s £419,000.
Salans chairman Stephen Finch said: “There are several drivers, such as high client activity in Central and Eastern Europe, as well as new offices in Spain and Budapest. It really is high client activity and more lawyers, to put it simply.”
Finch said Salans has insulated itself from the consequences of the credit crunch with its operations in Central and Eastern Europe, where dealmakers have not yet felt the effects of the crisis.
The figures represent the cash earnings of the firm and do not include work in progress. Finch said: “That figure is cash. We have more or less three months in the bag already this year in work in progress and unpaid bills.” Since 2005 Salans’ turnover has grown by 65 per cent, from $170m (£90.4m). Last year saw the firm open in Madrid and Barcelona with former Pinsent Masons alliance firm Masons Buxeda Menchén, as well as in Budapest with two partners from Szabó Kovári Tercsák & Partners.