Pillsbury revenue growth stalls but profit rises

Pillsbury Winthrop Shaw Pittman has posted a double-digit rise in average profit per equity partner (PEP) along with sluggish revenue growth for the second year running, as the West Coast firm becomes one of the first US firms to announce its financial results.

PEP was up 12.6 per cent to $985,000 (£500,000). The increase follows the 14 per cent rise in 2006 from $765,000 (£388,000) to $875,000 (£441,000).

In a statement the firm said it was now “well within striking distance” of its goal to achieve $1m PEP by the end of 2008.

In contrast, total revenue remained all but static in 2007. Pillsbury recorded an increase in revenue of just 2 per cent, up from $579m (£294m) in 20006 to $590m (£299m) last year. In 2006, revenue rose by just 1 per cent.

One positive note highlighted by a Pillsbury insider was that last year’s slight increase was secured with fewer lawyers than in 2006. This, said the source, was the result of Pillsbury’s programme of integration and increased focus on core areas following its 2005 merger with Shaw Pittman.

Consequently, Pillsbury’s revenue per lawyer showed a more significant increase, up 5.2 per cent to $810,000 (£411,000).

“Strong financial performances first in 2006 and now 2007 clearly indicate that Pillsbury’s strategy of increased productivity, focus on our core strengths and full integration of our offices and practices into a collaborative, unified, well-managed network has paid off as expected two years after the merger,” the statement added.