Hogan Lovells has unveiled its 2013 financial results, posting a record global turnover along with double-digit growth in average profit per equity partner (PEP) to $1.2m (£721,000).
The firm’s global revenue figure totalled $1.718bn (£1.07bn) last year, a rise of 5.2 per cent from $1.633bn, while PEP rose 10 per cent from $1.097m the previous year. Its London base, which accounts for 24 per cent of worldwide revenues, saw turnover rise 4.5 per cent from £254m to £265.4m.
Equity entitlement is reviewed at the firm every two years, with bonuses released in the first quarter of every year. Co-CEO Warren Gorrell told The Lawyer he expects bonuses to be higher this year because of the increase in profitability.
The figures mark a turnaround for Hogan Lovells . Since the 2010 merger agreement between legacy Lovells and Hogan & Hartson, financial growth at the combined firm has – until the 2013 financial year – been underwhelming.
With 2010 regarded as year zero for the post-merger firm, co-CEO David Harris had positively spun the static results in 2011 (16 February 2012 ) and slip in revenues in 2012 (1 March 2013 ) as signs of the firm’s resilience (13 August 2013 ).
He told The Lawyer: “We didn’t change anything in 2013. The improvement [in financial performance] is not just an improvement in market conditions. What we’ve achieved in the past year has been in the pipeline for a while.”
Matters Hogan Lovells worked on during the 2013 financial year included advising on the European competition, pensions and employee share plan aspects of Liberty Global’s £15bn acquisition of Virgin Media (6 February 2013 ).
The increase in London financials matches the office’s lateral hiring spree in recent months. Since October the London base has hired legacy SJ Berwin private equity partner Ed Harris (22 October 2013 ), Herbert Smith Freehills environmental partner Louise Moore (5 November 2013 ), Field Fisher Waterhouse ’s privacy and information group head Eduardo Ustaran (10 October 2013 ) and longstanding Allen & Overy corporate partner Don McGown (31 January 2014 ).
London head Susan Bright said: “Half of the firm’s top 20 clients are managed or co-led from London. We’re creating a significant and distinctive name for ourselves in the City for work in highly regulated industry sectors such as financial services and energy, as well as handling complex cross-border high-profile disputes where London is viewed as a reliable and independent jurisdiction.”
Bright now plans on investing in a number of new initiatives for the City office.
Hogan Lovells recently elected US partner Steve Immelt as its new CEO, ahead of the decision of Harris and Gorrell to step down in June 2014 (17 December 2013 ).