Pinsents reports revenue drop but profit rise
Pinsent Masons’ net profit grew by a third for the 2009-10 financial year, while turnover dropped by four per cent.
David Ryan
The firm has reported a 32 per cent increase in average profit per equity partner (PEP) from £310,000 during 2008-09 to £410,000 this year. Turnover fell by four per cent from £215m to £206m.
The firm’s managing partner David Ryan said: “Our results reflect a spirited and determined performance by everyone in the business. In a tough climate, we not only made real progress but also made some important, strategic investments - particularly in life sciences and Islamic finance - which augur well for this year.
“There were some stand out performances in many areas of our business - most notably international arbitration, our Gulf operations, restructuring and pensions, and outsourcing, technology and commercial. Many other businesses held their own.
“We’re confident that there’s more progress to be made this year, along with sizeable investment in our major new London HQ.”
Other firms to have reported results recently include Stephenson Harwood, which grossed £92m and reported a PEP of £561,000 (22 June 2010), LG, which made £65m and recorded PEP of £460,000 and Norton Rose, which made £307m and is expected to see PEP fall slightly (21 June 2010).
Readers' comments (2)
Anonymous | 23-Jun-2010 2:33 pm
Taking an axe to your firm has paid off for equity partners anyway.
The following comes to mind:
"If you can increase the size of your department, when all about you lose theirs, if you can avoid taking decision and yet impress your superiors, while all others doubt you - THEN you'll be a manger my son"
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Anonymous | 23-Jun-2010 7:57 pm
As has been commented on the stories about PEP rises at other firms, when the dust settles on the results season it would be interesting for The Lawyer to analyse the actual LLP accounts of the various firms which will be released in due course and see how these results actually translate in reality. Then we will be able to make a true comparison of which firms have done better than others.
Simply cutting back on the number of equity partners alters the PEP figures massively and simply shares a slightly smaller pie around an even smaller equity pool. In the short term that may work, but in the long run you will just build up an increasingly unhappy set of salaried partners/senior associates who are likely to leave.
Also it will be interesting to see the figures for actual head count, particularly fee earner count in the two financial years under consideration. The firms which should be applauded are those which have maintained profit rises with slightly smaller equity pools or more impressively grown those equity pools while maintaining fee earner numbers. There any profit gains will be from winning new business or true efficiency gains in running the business, rather than simply cutting back on lawyer numbers. Also those are the firms best placed for any upturn.
Which camp Pinsent Masons falls into we shall see. However, it will be interesting to see if the ‘new investments’ will replace some of the partners who have left in the last few months, such as a national head of insurance, joint head of restructuring in London and four construction partners.
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