Lovells’ 30 per cent PEP hike sows seeds of recovery

Lovells has bounced back from its woeful 2004-05 financial results after reporting a 30 per cent leap in average profit per partner at the half-year stage.

The firm has seen its turnover jump by about 10 per cent from £160m to £176m at the six-month stage. This leaves Lovells on track to correct the dismal results, when PEP plummeted 21 per cent to £427,000 and turnover dropped 3 per cent to £366m.

Since taking office last November, Lovells managing partner David Harris has tackled the firm’s decline in profit head-on.

Last December the firm pushed through one of the biggest redundancy packages ever witnessed at a City law firm. This was followed by a major shift in the way the firm reports financial information internally to partners.

Lovells declined to comment.