Linklaters‘ average profit per equity partner (PEP) has broken the £1m mark for the first time following a staggering 26 per cent increase.
The magic circle giant’s average PEP reached £1.06m for 2005-06, up from £843,000 in 2004-05. Slaughter and May is the only other UK firm with an average PEP above the £1m barrier.
At the same time, Linklaters has reported a 16 per cent increase in turnover to £935m, placing the firm within touching distance of the billion-pound mark.
Managing partner Tony Angel attributed the improved profitability to the firm’s restructuring, “which allowed increases in turnover to flow through to the bottom line”.
Linklaters’ new average PEP figure is almost equal to the firm’s top of equity figure of £1.07m last year. Top of equity for 2005-06 has been bumped up to £1.32m, while bottom of equity becomes £528,000, up from £425,000 in 2004-05.
Angel said the strong financial figures broke the firm’s budget by 19 per cent. As a result, all staff will receive a profit-related bonus, placed at £2,400 in London.
Angel explained that the new figures were based on a 29 per cent increase in overall net operating profit for 2005-06 and a combined 58 per cent increase over the past two years.
The results consolidate Linklaters’ successful 2004-05 year, when the firm reversed its disappointing results of 2003-04.