RPC predicts PEP to mirror revenue’s hike of 5 per cent

Reynolds Porter Chamberlain (RPC) is anticipating a 5 per cent increase in ­average profit per equity partner (PEP) to match the 5 per cent rise in total ­revenue it posted last week.

Jonathan Watmough

Jonathan Watmough

RPC managing partner Jonathan Watmough said the precise outcome would not be known for several weeks, but it was likely PEP would be up to around £316,000 for the 2008-09 financial year.

“We’re pleased,” said Watmough. “It’s a good result.”

He said the firm’s results had been helped by its lack of exposure to the financial sector and the “gradual increase in volume” of ­disputes.

Although RPC’s real estate and transactional practices were down last year, Watmough said the firm’s client base was almost wholly corporate rather than financial.

“Corporate is actually very busy at the moment,” he added.

Insurance increased in activity levels across the board, although Watmough said the practice had been moving to the “lumpier”, higher margin end of the spectrum and away from volume business.

“We’ve been migrating the practice that way for the past four or five years as the volume insurance business has been migrating out of London,” he said.

RPC has also beefed up its regulatory practice recently in both contentious and non-contentious work. Last October the firm hired Steven Francis as a partner from the Financial Services Authority, where he was a manager of one of the ­regulator’s wholesale enforcement teams.