Sterling strength puts dent in annual results for law firm Freshfields Bruckhaus Deringer
International law firm Freshfields Bruckhaus Deringer saw revenues increase just one per cent for the year ending 30 April.
The London-based legal practice blamed strong currency headwinds for the results, saying today that revenues increased by four per cent on a constant currency basis.
Freshfields also reported a drop of one per cent in net income, from £578m to £574m last year. Profits per equity partner were £1.369m, down eight per cent from £1.48m the year before. The firm blamed the move on changes in the partnership structure, as well as currency movements.
Nevertheless, David Aitman, a global managing partner at the firm, remained confident, saying: “We’ve developed very strong transactional, regulatory and contentious practices over the years, which have helped deliver a very solid financial performance against strong currency headwinds.”
Freshfields is one of the five so-called Magic Circle law firms, along with Allen & Overy, Clifford Chance, Linklaters and Slaughter and May. Last week, Allen & Overy reported a seven per cent increase in profits and a four per cent jump in revenues from the previous year.