09:23, July 11 70 0

2017-07-11 09:23:06
Travers Smith PEP drops below £1m while revenue growth slows

Travers Smith’s average profit per equity partner (PEP) has dropped below the £1m mark, after hitting the milestone for the first time in the previous financial year.

The firm posted mixed financial results for 2016/2017, recording a 4 per cent drop in PEP from £1.02m to £970,000.

In 2015/16, Travers said it had hit the £1m PEP enabling it to join a record number of 11 firms in the elite club. These included Slaughter and May, the magic circle and Macfarlanes. The latter firm reported PEP growth of 8 per cent over 2016/17 to £1.38m.

Despite the falling PEP, Travers turnover increased by 4 per cent from £120m to £125m. The growth is smaller than last year in which the firm posted gains of 8 per cent.

Managing partner David Patient said: “Our latest financial year started one week after the surprise Brexit vote, and there is no denying that, as a result, this year has presented a number of challenges for our clients, our firm and the legal profession as a whole.”

He added: “Although PEP was down marginally this year, we are right in the middle of a period of significant strategic investment in our people and business, so the costs of running our business have gone up.

“Our results are, therefore, encouraging in the context of the investments made to date, and we are pretty happy with the direction of travel over the last few years.”

Strategic investments include boosting its business services personnel and carrying out refurbishment works in its London office. Travers has also been investing in AI technology and trialled a due diligence tool developed by RAVN in its corporate practice.