Reed Smith plans 40 per cent post-merger growth

Reed Smith has released its last year-end figures before its merger with Richards Butler, showing a growth in revenue of 14 per cent to hit $644m (£332m) in 2006.

The firm is planning a massive 40 per cent growth in revenues this year to break through the $900m barrier.

The figure takes into account the merger with Richards Butler, which could bring in an extra $120m, and Chicago firm Sachnoff & Weaver, whose 140-lawyers have an estimated revenue of around $80m, which means organic growth is expected to top $60m.

UK managing partner Tim Foster said: “The budgets this year will predict further expansion. We are not assuming that 2007 will be a period of retrenchment.”

Revenue in the UK grew 10 per cent to $45m. Foster said working and cross-selling with Richards Butler for the last six months of the year had contributed to the growth in the UK.

Average profit per equity partner increased from $800,000 to $941,000.

Foster said: “The lawyers are doing more hours and better work at higher rates.” Closer links to clients in the financial services and life-sciences sector have also helped the firm expand.