Lovells has been hit by disappointing financial results, with average profit per equity partner (PEP) rising by just 2 per cent and turnover increasing by 7 per cent.
Revenue is up to £425m from £396m last year, while average PEP has sneaked up to £585,000 from £572,000.
Although this does not compare favourably to the likes of Eversheds, which announced a 20 per cent rise in PEP and an 11 per cent increase in turnover, Lovells managing partner David Harris said two exceptional points had to be taken into account.
“These results show a strong performance given that the figures are after allowing for the costs of closing our Berlin office and raising the entry point into the lockstep for junior equity partners,” he said.
On the firm’s points system, equity partners with 60 points receive the maximum share of profit. Previously lawyers would enter the equity partnership on 24 points, but that figure had risen to 30 in the past year.
This, said Harris, meant that partners at the bottom of the lockstep received a far greater share of the profit, at £362,000 compared with £287,000 last year, a rise of 26 per cent.