04:36, October 16 155 0

2017-10-16 04:36:10
McDermott PEP drops as London revenue hits £22.9m, accounts show

McDermott Will & Emery’s turnover rose by 2.3 per cent to £22.9m in 2016, while average profit per equity partner stood at £348,000, down by 9 per cent from £383,000, LLP accounts show.

This is the highest turnover for the firm in three years, compared to £20.5m in 2015 and £21.9m in 2014.

Net profit stood at £9.8m in 2016, up by 2 per cent from £9.6m, which the firm had maintained flat since 2013.

During the year, the firm’s London office generated a total of £7.75m in billings, up from the previous year’s £7.2m. However, this figure fell short compared to 2014, when the firmg enerated £8.8m in billings.

The LLP was charged £2m by other offices in the network for work during the period, the highest amount in three years.

The Lawyer’s Top 50 US firms in London report released earlier this year estimated McDermott’s turnover to be far higher than the LLPs show, entering the tables at number 37 with revenue figures of $42m.

With an average exchange rate last year of 1.5 per cent, the figure would be closer to the $34m mark, putting the firm closer to Winston & Strawn (with $34m at number 39) and Arnold & Porter ahead of its merger with Kaye Scholer at $33m.

London office managing partner Andrew Vergunst said: “In line with the firm’s 2020 vision, we’ve built out our key practice areas and invested in new practice areas in London to really play to our strengths – and this has taken an investment – both in financial terms, through investment in new partners and building out bench strength in certain practices, and in the time it takes to make that happen.

“What we see today in the market-leading positions of our healthcare, private equity and private client practices in particular are great examples of how this is already paying off.

“Essentially, it’s what’s behind our figures that counts here.  The strategy behind the numbers is key. The McDermott London office is excellently positioned, both in its client markets and in its position in the legal industry.  We will continue to see McDermott consolidate and grow, playing to its strengths and providing first-class work for our clients.”

Earlier this year, The Lawyer reported that McDermott partners put aside $26m (£20.7m) to invest in the firm’s infrastructure after its 2016 global revenue increased by 2 per cent to $908.7m.

This renewed focus will mean further growth in London, which added to its 24-strong partnership with the hire of Simmons & Simmons restructuring and insolvency partner Alan Gar to boost its corporate and transactional team. Since then, the firm has also hired Capsticks partner Sharon Lamb.