Eversheds posts 2 per cent revenue rise to £384m, PEP up 13.6 per cent to £729k

Eversheds’ revenue rose by 2 per cent at the end of 2013/14 from £376m to £384m, while net profit increased just 1 per cent from £85.4m to £86.2m.

Average profit per equity partner increased 13.6 per cent from £642,000 to £729,000. The firm said bonus payments to staff increased by 22 per cent year-one-year.

Revenue growth has slowed in recent years, while PEP growth has accelerated. At the 2012/13 Eversheds pushed revenue up by 2.7 per cent from £366m to £376m, while PEP rose by 1.58 per cent from £632,000 to £642,000.

Eversheds in the last financial year it had made heavy investment in expansion, with £30m – 8 per cent of revenue – put back into the firm.

Some of that investment was seen in the firm’s prominent drive to increase its footprint in Africa. In December 2013 it secured four new offices in the region, including a tie-up with South African firm Mahons Attorneys and El Heni in Tunisia (4 December 2013).

Africa expansion continued this year with the formalisation of a three-year cooperation agreement to launch two offices in Morocco (31 March 2014).

All of which followed a Beijing opening at the start of the financial year (17 May 2013) and an opening in Erbil in October (21 October 2013).

The firm’s international chair David Gray retired at the end of the 2012/13 financial year and Irish managing partner Alan Murphy was elected as the chair of its network of associated international firms, Eversheds International (2 May 2013).

Taken by region, the Middle East was the best performer increasing turnover by 32 per cent while in Asia revenues grew by 9 per cent. In London, turnover was up by 7 per cent.

By sector the greatest level of growth was seen in the firm’s transport sectors which were up by 22 per cent last year, and financial institutions which saw a 15 per cent rise in income.

Eversheds chief executive Bryan Hughes said the firm managed to improve its cash position and invest despite the broadly flat market.

“Looking forward, if the recent upturn in transactional activity continues, we expect to further improve upon our financial position this year,” he added.

Hughes started the 2013/14 financial-year by adding four new sector groups and overhauling a number of key leadership positions in a wide-ranging management shake-up (31 May 2013).

The management changes were all part of Hughes 2020 Vision which he revealed to partners and associates two years ago (9 July 2012).

The long-term plan is more aspirational than the firms three-year plan, with Hughes aiming to overtake the firms competitors by “setting the standard” in things like innovation, relationships and quality.

Eversheds – a decade in numbers
  Turnover (£m)  Difference (%) PEP (£k) Difference (%)
2013/14 384 2.1 729 13.6
2012/13 376 2.7 642 1.6
2011/12 366 3.2 632 13.9
2010/11 354.5 -0.2 555 7.35
2009/10 355.2 -2.9 517 28
2008/09 365.9 -6.2 404 -26.8
2007/08 390 9.5 552 10
2006/07 356 10.2 502 19
2005/06 323 6.7 422 20.6
2004/05 302.8 6.3 350 13.6