Allen & Overy profits dip as it battles headwinds ahead of Shearman & Sterling merger
Law firm Allen & Overy has reported a slight dip in its annual pre-tax profits as it battled “intensifying headwinds” ahead of its merger with Shearman & Sterling.
Pre-tax profits came in at £892m for the year ending 30 April, down from £900m the previous year. Average profit per equity partner came in at £1.82m.
But the firm saw a seven per cent increase in annual client revenues, jumping to £2.1bn.
“Our diversified business continued to show client revenue growth over the past 12 months, despite intensifying headwinds,” Wim Dejonghe, global senior partner, said.
“Like the rest of the sector, we were impacted by the global economic slowdown, inflationary pressure and geopolitical turmoil,” Dejonghe said.
The firm also announced that global managing partner Gareth Price has resigned after 30 years at the top.
The move comes ahead of Allen & Overy’s tie-up with Shearman & Sterling – one of the biggest legal mergers in recent history, forging a firm with 3,900 lawyers across 49 offices around the world.
The new merged firm will be known as A&O Shearman.
“Our clients are telling us that they are looking forward to the prospect of working with A&O Shearman,” Dejonghe said. “They recognise the value that our two firms coming together will deliver for them.”