Allen & Overy reports hefty 17 per cent jump in profit per equity partner
The Magic Circle firm joins a select band to report improved financial performance through the COVID-19 pandemic
Magic Circle firm Allen & Overy (A&O's) has joined a select band of law firms reporting improved financial performance through the DOVID-19 pandemic. The firm has announced that its revenue has climbed 5 per cent to £1.77 billion against a 17 per cent jump in profit per equity partner (PEP).
While revenue growth has gone past last year's 4 per cent increase, profit per equity partner has rebounded strongly after a 1.7 per cent fall last year to hit £1.90 million. A&O reported that its profit before tax jumped by 19 per cent to reach £822 million in the financial year ending 30 April.
"We focused on the wellbeing of colleagues as they worked remotely and often very long hours… And we looked after the people in our supply chain in a responsible way," A&O Global Managing Partner Gareth Price said while paying compliments to the firm's employees for responding to the challenges imposed by the pandemic.
"Our services are more in demand now than ever in our history and we have started the new financial year strongly, driven in particular by exceptionally high levels of M&A activity," Price added.
The results were driven largely by a strong performance by its transactional and disputes practices. The firm said it had advised on 12 per cent more deals than any other practice in 2020, benefiting strongly from the booming special purpose acquisition company (SPAC) market in the US and Europe.
International capital markets, banking and corporate practices also recorded improved performance, while income for its real estate and tax practices remained broadly flat. Regionally, revenue growth was driven by its operations in the US, the UK and mainland Europe.