Lovells has bounced back from its woeful 2004-05 financial results after reporting a whopping 40 per cent leap in profit.
According to Lovells’ preliminary financial results for 2005-06, the top of equity has jumped by 40 per cent, from £502,000 to £700,000, on the back of an extreme cost-cutting programme and changes to the lockstep.
The results will be a huge boost for Lovells, which saw a 21 per cent slide in profit in 2004-05. The jump in the firm’s top of equity figure is also symbolic, as it exceeds the 2003-04 figure of £635,000.
Managing partner David Harris, who has been tackling Lovells’ profit decline, told The Lawyer: “We’ve significantly increased our profitability. As a result, we’re now well ahead of where we were last year and up on the year before.
“Everybody recognises that 2003-04 was a good year for Lovells, so to be ahead of that is a good place to be.”
Lovells’ turnover, meanwhile, has increased just 8 per cent, from £366m to £396m. London revenue has inched up only 2 per cent. In contrast, Lovells’ US, Asia and Continental Europe offices have seen revenue rises of 20 per cent, 20 per cent and 15 per cent respectively.
Lovells addressed costs head-on in December 2004 by axing 25 partners. The firm absorbed one-third of the restructuring costs in the last financial year.