Macfarlanes posts stable results and £3.1m PEP after ‘transitional year’

Macfarlanes has reported a stable set of financial results, with profit per equity partner holding above £3 million and revenue rising about 5% to £389.5 million.

PEP was relatively flat at £3.1 million following last year’s 20% rise in PEP, when it surpassed £3 million for the first time. The firm’s operating profit inched up by 2.7% to £212 million.

Senior partner Damien Crossley, who succeeded Sebastian Prichard Jones in March, called the results “a satisfactory outcome” for a “transitional year”.

Despite this year’s more modest growth, Macfarlanes remains at the front of the pack for PEP in the City while achieving comparatively lower revenue. The Magic Circle firms that have reported results so far this year all sit behind the Silver Circle firm on that measure.

A&O Shearman’s PEP was around £2.2 million despite a global turnover of £2.8 billion, and Linklaters partners took home an average of £2.48 million in the previous financial year while the firm generated £2.47 billion. Clifford Chance’s PEP hit £2.3 million on revenues of £2.6 billion.

The results come after Macfarlanes raised its newly qualified solicitor salaries to £150,000 in early July, matching the Magic Circle.

What they said

“The results reflect some standout mandates in our M&A and disputes practices and continued strength in our advisory practices against a market backdrop that was challenging at times,” said Crossley.

"We used the year to make some changes that we believe will drive future success.”

He added that the firm has restructured its practice areas to align with its view of market opportunities and that its newly minted representative office in New York will support its strategy and “independence”.

Crossley said: “The early signs for the new financial year are encouraging.”