Travers Smith has boosted turnover by 13 per cent from £86.2m to £97.2m in 2013/14, while average profit by full equity partner (PEP) rose by 12 per cent to £882,000 compared with £790,000 a year ago.
It is a return to double digit growth for Travers, which saw revenue rise by 18 per cent in 2011/12 from £71m to £83.8m, before slowing in 2012/13 when the firm turned over £86.2m – up 2.9 per cent.
Last year’s boost in PEP is also a marked uplift on the previous financial year. In 2012/13 the firm struggled to boost its PEP figure, dropping 1.7 per cent to £790,000 compared to the previous year’s £804,000.
In the past four years Travers has boosted turnover by 35 per cent, from £72m in 2009/10 to £97.2m last year. In that time PEP has increased by 25 per cent, up from £705,000 at the 2009/10 year-end.
This financial year is the first since the firm introduced a flexible merit-based bonus for those working excessive hours or approaching partnership. In previous years it blamed inflated overheads and increased salaries for a fall in profit. Throughout 2012/13 the firm conducted a 10-month review of associate pay, resulting in a loosening of its traditionally strict lockstep.
Managing partner Andrew Lilley said: “More benevolent market conditions, including an increase in global M&A activity across a range of industry sectors, created renewed confidence amongst our clients. As a result, work levels remained consistently high across all areas of the firm throughout last year.
“Highlights included an exceptional year for our private equity and corporate finance practices, and sustained activity levels in our financial services & markets and dispute resolution practices.”
As well as increased corporate work, the firm was tasked this year with leading an independent review into allegations of the Bank of England allowed fixing of the foreign exchange market. The firm was appointed by the bank’s Oversight Committee in March (12 March 2014).
It is the first full financial year for new senior partner Chris Hale, who replaced Chris Carroll in February 2013 after ten years as head of corporate at the firm (6 February 2013).