Global law firm Clyde & Co announced its financial results for the financial year to 30 April 2020 in pre-audit figures released today.
Firmwide revenues at the UK-headquartered, global law firm rose 3% to £627million in the year to 30 April 2020, with underlying (or organic) growth of 4%, contributing £24 million of revenue.
Profit at the firm fell 5% to £143 million due to increased investment. Average profit per equity partner (PEP) was down 4% at £665,000 compared to £690,000 in the prior year. There were 28 new partners (15 lateral hires and 13 internal promotions to partner).
Peter Hirst, Clyde & Co's Global Senior Partner, says: "We are pleased to have posted solid revenue growth. This was a year in which the firm's new leadership team focused primarily on consolidation, investment and integration after many years of rapid growth and acquisition which have helped us become the leading sector focused global law firm we are today. "Even before COVID-19, we had been operating in an increasingly competitive market for legal services and faced significant economic and political headwinds, which is why our ability to post sustained levels of organic growth is especially pleasing and demonstrates the trust our clients continue to place in us around the world."
In the last financial year over half of the firm's revenue (53%) was generated outside of the UK, with North America now accounting for 22% of the firm's revenue, the Middle East and Africa 13% and Asia-Pacific 12%. Europe and Latin America account for 4% and 2% of revenues respectively. In June the firm launched its first European Board to lead and develop its fast growing continental European practice.
Matthew Kelsall, Clyde & Co Global Chief Executive Officer says: "We have become a firm that is resilient to global political and economic disruption and volatility thanks to our clear sector focus, geographical balance and market leading reputation. As we look to the future we are focused on providing our clients with the seamless, globally-integrated and technology-backed services they need in today's ever more complex and unstable commercial environment. This will involve a combination of further strategic expansion, investment in technology and our people, and a developing legal processes and innovation."
In June 2019, Clyde & Co named Peter Hirst as its new Global Senior Partner and subsequently announced the appointment of Matthew Kelsall as Chief Executive Officer in the Autumn.
In December 2019 it announced the appointments of Dame Inga Beale and Stephen Chipman as independent board members (the equivalent of non-executive directors) to its Management Board – the first time such a position has been created at the firm and with the aim of ensuring industry-leading governance and decision-making structures to reflect the size, global nature and ambitions of the firm.
As a result of the COVID-19 pandemic, which spanned the final quarter of the financial year, the firm moved to a positon where up to 90% of its lawyers and support teams were operating remotely. It also set up a COVID-19 desk made up of partners from across the firm to help clients access the legal advice, information and support they need to deal with the unique challenges the pandemic is posing.
Peter Hirst, says: "I'm very proud of the way our firm and our people adapted to the operational and personal challenges posed by COVID-19 and our ability to make the necessary decisions to keep delivering for clients throughout this tumultuous period. Indeed, our clients have consistently called on us to help them deal with the complex, multifaceted and global legal challenges they face as a result of the pandemic, which is testament to our global standing and reputation in our core sectors."