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Global firms post robust revenue results despite COVID-19 hit
Global law firms have posted steady results despite the effects of COVID-19, with one gaining ahead over its rivals.
Tony Zhang
According to its FY20 financial results, Ashurst recorded £644 million in revenue for the year ending 30 April 2020. Meanwhile, average profit per equity partner came in at £903,000.
Paul Jenkins, Ashurst’s global managing partner reflected that “FY20 was a year of consolidation.”
“Our aim in FY20 was to sustain and build on the strong 14 per cent revenue growth we saw in the previous financial year and it was pleasing to see that growth continue,” he said.
“We were on target to achieve a higher level of growth until late January when markets in Asia Pacific, in which we now generate almost 50 per cent of our revenue, were the first to be disrupted by the pandemic. Our other markets were impacted towards the end of the financial year.
“We have delivered a robust performance despite these challenging market conditions.”
Meanwhile Clifford Chance recorded a fifth consecutive year of revenue and profit growth to wrap up the fiscal year.
The firm recorded total revenues of £1.803 billion, representing growth of 6 per cent year-on-year.
Partnership profits recorded £666 million, an increase of 5 per cent year-on-year. The firm said they saw robust income and profit growth across all regions and practices.
However, the firm has stated that it has taken a provision against the FY20 profits distributable to partners, recognising the continuing uncertain market conditions due to the pandemic.
Despite putting a hold on salary reviews and increases and deferring partner profit distribution, Clifford Chance said the results were the strongest recorded to date, “despite the last quarter of the year being marked by the impact of the spread of the coronavirus across the globe.”
“In 2015 we put our vision to be the global law firm of choice at the core of all we do. Since then, we have made excellent progress against our goals by taking a [long-term] view and making strategic investments in our business while remaining agile and adaptable,” Matthew Layton, Clifford Chance global managing partner, commented.
The results mean the firm topped its main rivals Allen & Overy and Linklaters.
Allen & Overy’s annual revenue had overtaken Linklaters’ after it recorded a 4 per cent increase to £1.69 billion, putting it just ahead of its magic circle counterpart which managed a 0.7 per cent uptick to £1.64 billion.
However, COVID-19 has had an effect, with both firms recording declines in profit per equity partner results.
A&O saw PEP shrink by 1.7 per cent to £1.63 million but revenue had grown by 4 per cent to £1.69 billion.
Meanwhile, Linklaters’ revenue increased slightly (0.7 per cent) to £1.64 billion and PEP dropped by 5.1 per cent to a still steady £1.61 million.
“These are strong results, with revenue growth in all our global practices, proving the success of the broad-based strategy we have followed over the last decade,” A&O global managing partner Gareth Price said.
“The combination of the widest international network of our peers, genuine local insight and a market-leading position in use of technology and alternative client services is increasingly compelling to our global client base.”
