07:19, May 19 395 0

2017-05-19 07:19:06
Eversheds boosts revenue by 8 per cent in first post-merger financial results

Eversheds Sutherland has released its first post-merger financial results today, posting an 8 per cent boost in revenue to £438.6m.

Eversheds’ net profit dropped by 4 per cent from £87.6m to £84.1m following flat results in 2016 and 2015, while profit per equity partner (PEP) decreased by 2 per cent from £742,000 to £726,000.

These are also the first financial results with Eversheds managing partner Lee Ranson in charge. Ranson was elected as the firm’s new chief executive in 2016 and replaced Bryan Hughes earlier this year.

Ranson attributed the drop in profitability at the firm to “continued strategic investment in people, recruitment and, most notably, our US combination”.

Ranson told The Lawyer that the firm has front-loaded investments such as the combination with Sutherland, new tech investment, and recruitment across the network, which included the acquisition of a practice in Germany.

“There are some very positive signs that have come from the combination,” Ranson said. “You have to look to the longer term to see these flow through to the financial results.”

The talks between Eversheds and US outfit Sutherland & Asbill were reported late last year, in a deal that created transatlantic business with a turnover of £600m. These successful talks were held after negotiations with US firm Foley & Lardner fell through.

Ranson has said that the firm’s London office has performed “really strongly particularly on the transactional side”. “After a small slowdown on the real estate side [following the Brexit vote] we saw that pick up.”

Last year Eversheds’ turnover surpassed £400m for the first time after revenue grew by 6.5 per cent during the 2015/16 financial year, from £381m to £405.5m.

The results are a significant improvement on the previous financial year, which saw revenue fall by less than 1 per cent, from £384m in 2013/14.