Travers Smith sees PEP soar by 24 per cent at end of strong 2011-12

Travers Smith has posted a 16 per cent increase in turnover for the 2011-12 financial year, with average profit per equity partner (PEP) jumping 24 per cent despite a static equity partner count.

Andrew Lilley
Andrew Lilley

The City firm brought in £83.8m in fees across the year, an increase on £72m in 2010-11, marking the firm’s first revenue increase for two years.

Last year Travers’ fee income was flat at £72m, with the result coming on the back of a 12 per cent increase in revenue and a 53 per cent PEP hike in 2009-10 (9 July 2010).

PEP for 2011-12 rose from £650,000 to £804,000, its highest figure since 2006-07, when it reached a peak of £810,000 (16 July 2007).

Net profit for 2011-12 increased 25 per cent in 2011-12, with the minimal rise in the average size of the equity partnership across the year, from 43 in 2010-11 to 43.66, enabling the firm to clinch a similar rise in PEP.

Managing partner Andrew Lilley said the turnover rise spanned all practice areas and that the upturn in the firm’s profit margin, from 39 per cent last year to 49 per cent, mirrored an increase in workflow rather than a cost-cutting drive.

The result follows close rival Macfarlanes’ announcement of a 8 per cent turnover hike and 20 per cent increase in PEP for 2011-12 (6 July 2012). However, Macfarlanes’ PEP rise came amid a 11 per cent cut to the size of its equity partnership.