Strategy review sparks Linklaters turnover hike

Linklaters turnover hike” />Linklaters has continued to resurrect its financial performance, reporting a 16 per cent increase in turnover during the first half of the financial year.

The magic circle giant claims to have made £438m in billings during the first six months of the 2005-06 financial year, compared with £376m for the same period during 2004-05.

The increase confirms that the firm has put its disappointing 2003-04 results, when PEP slumped 8 per cent and turnover remained stagnant, behind it.

Managing partner Tony Angel said the increase was largely thanks to the firm’s strategy to focus on a small group of core clients, including investment and commercial banks and international corporates. Billings for this group are up 25 per cent.

However, this strategy has been associated with the spate of enforced exits at Linklaters in recent years.

The firm’s booming New York office, which has taken on eight new partners so far this financial year, and its small Tokyo operation, were also said to have had highly profitable first halves.

If Linklaters was able to maintain 16 per cent growth in turnover for the rest of the financial year, this would put the firm on track to report total revenue of £933m at the end of the 2005/06 financial year.

But Angel said it would be difficult to maintain this level during the second half because of the firm’s particularly strong second half in 2004-05.

Linklaters reported a 25 per cent increase in PEP and 12 per cent increase in turnover during 2004-05.