Mishcon beats budget with 30 per cent turnover hike
Mishcon de Reya has unveiled a budget-busting increase in both total turnover and average profit per equity partner (PEP) for the 2010-11 financial year.
The 30 per cent hike in total turnover, from £47.5m to £61.5m, has put the Holborn firm well on track to hit its three-year target of £80m, set last year, and significantly beats its budget for 2010-11.
“We were aiming for around £57.5m this year but exceeded that by sheer weight of traffic,” said managing partner Kevin Gold.
The increase in revenue was partly helped by a record year in the recruitment market. Mishcon made 10 lateral partner hires last year, more than in any other 12-month period.
“We knew that during the recession we were in a position where we could afford to recruit,” added Gold. “We’ve achieved this growth in revenue and profit at the same time as growing the total partner numbers and the equity.”
Gold said the biggest single change in the firm’s practice had been the consolidation of several groups such as private tax, libel and residential conveyancing into new group Mishcon Private.
“Now, whatever a client’s point of entry to the firm might be, they’ll find people who understand their issues,” added Gold.
Mishcon is yet to finalise its PEP for last year but it is certain to rise by at least 28 per cent from £450,000 to £575,000. Early indications suggest it could even pip £600,000 once the firm’s accounts are signed off.
Readers' comments (1)
More partners = more revenue | 2-Jun-2011 3:39 pm
I was scratching my head to work this one out, but thanks to The Lawyer the mystery is solved. A firm that last reported having 22 equity partners has hired 10 more over the last 12 months. That explains the apparent 'magical' revenue growth.
As to the profits - improving what were decimated profits is not a biggy if you cut costs and ride back up with the market.
(Phew - I thought the world had gone mad for a moment...but apparently not.)
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