Allen & Overy (A&O) has announced a 3 per cent drop in its revenue for the first half of the 2012/13 financial year, turning over £566m in the six months from 1 May.
The magic circle firm’s income figure compares with £582m for the same period in 2011/12, although the firm said its half-year turnover grew 1 per cent on a constant currency basis. Presented in euros, the revenue figure rose 6 per cent from €664m to €703m.
The firm said there were particularly strong performances in Germany, where it has made a number of hires in the past year, as well as in Poland, South East Asia and the Middle East.
Managing partner Wim Dejonghe told The Lawyer: “The corporate and M&A market has been very subdued. The strong performers have been litigation and banking – the markets have been better than the corporate and M&A market.
“If you look at our revenues in euros, they’re actually going up. This is really a story about exchange rates. We need to get used to the new normal, which is no to limited growth.”
Commenting on the firm’s German performances, Dejonghe added: “It’s basically about expansion. It’s a market that’s doing quite well. There’s quite a lot of cross-border work.”
The firm posted an 11 per cent half-year revenue rise this time last year, with the £582m up on £526m for the first six months of 2010/11 (10 November 2011).
Dejonghe added in a statement: “Market conditions will no doubt present further challenges during the second half but we’re confident that if we maintain our focus and stay close to our clients, the underlying resilience of our business will stand us in good stead.”
Earlier this year A&O announced a 6 per cent rise in turnover for the whole of 2011/12, up to £1.18bn in 2011-12 from £1.12bn, with average profit per equity partner static at £1.1m (3 July 2012).
Magic circle rivals Clifford Chance, Freshfields Bruckhaus Deringer and Linklaters do not publish half-year financial results, while Slaughter and May, which is not an LLP, is not required to post even end-of-year figures.