Macfarlanes’ figures hit by credit crunch

<a class=Macfarlanes‘ figures hit by credit crunch” />Macfarlanes has achieved a modest 6.7 per cent rise in revenue but failed to increase its average profit per equity partner.

In the firm’s latest financial results, turnover increased to £110m from £103m last year, while PEP remained static at £1.1m.

Senior partner Charles Martin put the profit figure down to the firm’s decision to open a new office at the beginning of June.

He said: “In a tough year, PEP is satisfactory given that we want to carry on paying our people well and have invested in a new building.”

The new office will mainly be used for client and partner meetings, but the firm is also refurbishing its existing premises on nearby Norwich Street.

Macfarlanes’s vaunted corporate practice will have been hit by a general decline in market activity created by the credit crunch. Last year it also received nearly 25 per cent of turnover from the real estate practice, another area to have suffered in the sub-prime crisis.

Martin added: “The revenues show a modest increase which isn’t bad given how a good deal of our revenue relates to the UK. We haven’t had an exchange rate benefit, and it’s not bad given that the credit crunch happened earlier than half way through the year.”