Mafarlanes upped its turnover by 22 per cent in the 2013/14 financial year, from £114.16m to £139.75m.
The increase follows the previous year’s rise of 11.7 per cent from £102.2m, bolstering revenue by more than a third in just two years (4 July 2013).
In 2013/14, net profit rose by 31.3 per cent from £49.2m to £64.6m – an increase of 52.4 per cent from the £42.4m reported in 2011/12. Average profit per equity partner was boosted from £989,000 to £1.2m, a 21 per cent uptick. The figure stood at £903,000 in 2011/12.
All three key financial metrics have grown steadily since 2010/11, after witnessing two successive years of decline (8 July 2011).
Macfarlanes’ senior partner Charles Martin said in a statement: “This shows what hard work, determined independence and great clients and people can do. A tough market, but lots of opportunity.”
The firm’s corporate practice generated the largest chunk of its revenue in 2013/14 – a total of 40.9 per cent, up from 35.7 per cent the previous year. That is partially thanks to the firm’s instruction on Verizon Communications’ $130bn acquisition of the 45 per cent stake of Verizon Wireless held by Vodafone, the third largest M&A transaction in history.
Meanwhile, the proportion of revenue brought in by the firm’s litigation and arbitration practices fell from 17.2 per cent to 14.9 per cent. Private client also diminished from 14.7 per cent to 13.1 per cent.
Macfarlanes’ real estate practice increased its yield as a proportion of the firm’s total from 11.6 per cent to 12.8 per cent, following heavy investment in rejuvenating the group. The firm decided to dissolve the firm’s property offering into its corporate, litigation and private client groups in 2010.
The real estate practice witnessed more lateral hires than any other at Macfarlanes over the past year, including Clare Breeze from Shearman & Sterling (13 June 2013), and Ann Minogue (12 August 2013) and Anthony Burnett-Scott who both joined from Ashurst (21 October 2013).
In 2012/13, the firm also welcomed lateral partners Michael Parkinson from Russell-Cooke and Charles Gothard from Speechly Bircham into its private client practice (26 November 2012), and Scott Brodsky – formerly of Baker & McKenzie – into its commercial offering to specialise in energy and projects work.
The firm’s expenditure on its office space rose from £5.7m to £6.1m during the course of 2013/14, after upping its area from 120,000 sq ft to 133,000 in the City. This follows an increase in its total number of staff from 522.2 to 545.5, with its total number of fee earners up by 8 per cent – from 328 to 354.5.