06:29, July 06 243 0

2017-07-06 06:29:07
Macfarlanes PEP jumps 8 per cent in year of solid growth

Macfarlanes’ average profit per equity partner (PEP) has risen nearly 8 per cent, although the figure still falls behind the firm’s record high of £1.5m two years ago.

The firm has reported a strong set of financials in the 2016/17 financial year, with PEP climbing from £1.29m to £1.38m.

Revenue nudged up 4 per cent from £161m to £167.6m, meaning the firm has nearly doubled its turnover in the last six years when it posted gains of £94.7m.

Operating profit also rose 4 per cent to £85.9m – in the previous financial year it recorded £81.7m.

Macfarlanes recorded a 30 per cent growth in PEP in 2014/15 after a string of large transactions. However, PEP plummeted 17 per cent in 2015/16, putting the firm back to levels recorded in 2014.

Unlike many firms that have benefitted from exchange rates this year, Macfarlanes said its billings in foreign currency and negligible and that the firm does not benefit from the effects.

Senior partner Charles Martin said: “For a year that included the Brexit vote and pockets of lower levels of activity, these result are pretty robust.

“Our clients are looking for opportunity in all this uncertainty: we are there to help. Huge credit and thanks go to the great, responsive and adaptable team we have here.”

Macfarlanes is one of the 11 firms to be a part of the £1m PEP club, alongside Slaughter and May, the magic circle and Travers Smith.

In the 2016/17 financial year, the firm opened a new office in Brussels after hiring a competition team from King & Wood Mallesons (KWM).

Partner Christoph Humpe is the sole partner in the office, while other team members including Tom Usher and former KWM senior partner Stephen Kon.

Alongside the hires, Macfarlanes has also lost a number of long-time partners, including competition partner Marc Israel who joined White & Case and financial services head David Berman to Quinn Emanuel Urquhart & Sullivan.