CMS Cameron McKenna has made nearly £4m from the tumbling value of the pound over the last year and a half, The Lawyer can reveal.
According to financial statements for 2007-08, the firm made £2.8m in foreign exchange gains thanks to revenue from its European offices.
The increasing strength of the euro, and other Eastern European currencies like the Bulgarian lev, means that a bill rises in sterling value from the time it is issued to the time it is paid by the client.
At the start of the financial year, one euro was worth 68p but by April 2008 that had risen to 79p. The value of the pound has since fallen further, with a single euro buying 88p, adding at least £1m to Camerons’ gains.
This is a reversal in fortunes from the preceding financial year. Between 2006 and 2007, the rising value of the pound saw the firm make a foreign exchange loss of £185,000.
Camerons finance director Krishna Vishnubhotla said: “Because a lot of our profits come from Central and Eastern Europe (CEE), the strength of the euro and other European currencies means that we’ve benefited through the year.”
Camerons’ CEE offices have long been one of the most profitable parts of the firm. It has offices in Bulgaria, Czech Republic, Hungary, Poland and Romania, as well as in Russia and Ukraine.