Linklaters boosts PEP further to leave Freshfields floundering

Linklaters’ financial performance has outstripped that of its magic circle competitor Freshfields Bruckhaus Deringer with the firm reporting even better financial results than previously expected.

A review of Linklaters’ final figures for the 2004/05 financial year has shown that average profits per equity partner (PEP) have risen by a staggering 25 per cent to reach £845,000, up from £674,000 the previous year.

This compares with indifferent results at Freshfields, where PEP increased 4 per cent to £700,000, up from £674,000 last year. However the firm’s turnover has slumped 0.5 per cent to reach £780m, down from £785m.

The financial results see the two firms switch places in the UK league tables based on revenue, with Linklaters soaring ahead with a 12 per cent increase in turnover to £805m, up from £720m last year.

Linklaters first reported an estimated 22 per cent rise in PEP in May, however this has been revised up following a strong second half of the year assisted in particular by the resurgent corporate department.

As a result, partners at the top of equity at Linklaters will receive £1.065m compared with last year’s figure of £864,000.