LG slumps as PEP dips for second year running

LG is the latest City firm to take a hit from the credit crunch, reporting a drop in profit per equity partner of 3.4 per cent.

LG slumps as PEP dips for second year runningLG slumps as PEP dips for second year runningLG has experienced a 3.4 per cent drop in profit per equity partner, a fact which managing partner Hugh Maule has labelled as “disappointing”.

The firm has announced a PEP of £430,000 this year, down £15,000 on last year.

Speaking to The Lawyer Maule said: “The words that keep coming to mind are ‘frustrating’ and ‘disappointing’.”

He added: “The market has definitely affected us, especially real estate because large institutional clients have stopped buying and selling. Deals are happening but are slower to come to completion.”

Real estate, which is the firm’s flagship practice group, experienced negative growth this year.

However, double digit growth in wealth planning and corporate helped overall growth nudge forward by 2.3 per cent to £67.5m.

This is the second year running that PEP has dipped. Last year it fell by 6.5 per cent, largely through costs incurred in the firm’s move to new offices on the South Bank.

The disappointing results at LG follows news of drops in PEP at other mid-market practices including BLP and Trowers & Hamlins, where profits fell by six and eight per cent respectively.