City law firm Ashurst has unveiled average partner profits of more than £1m for the first time since 2008 on the back of a booming deals practice.
The Anglo-Australian firm boosted profit per equity partner to £1.04m in the year to 30 April, up 15% on the previous financial year.
Ashurst increased its revenue to £711m, an increase of 10% on the previous year.
The firm had a tough financial crisis and struggled in the aftermath of its 2013 merger with Australian firm Blake Dawson with equity partner profits sinking to £603,000 in 2015-16.
However, under managing partner Paul Jenkins the firm has turned its financial performance around, growing revenue 40% in the last five years and growing profit per equity partner 72% over the same period.
Speaking to Financial News, Jenkins said the firm’s success was based on its focus on five key sectors of banks and private capital, energy and resources, infrastructure, real estate, and digital economy.
Jenkins said demand continued to be buoyant post year-end “with strong corporate activity, strength in finance-related areas including funds, and a lot of work on the dispute resolution side”.
In terms of future growth, Jenkins said the US continued to be “the missing piece of the puzzle for the firm,” but he said there was “nothing to report at the moment” about the firm’s trans-Atlantic plans.
Other law firms to report their 2021 results so far include Allen & Overy, which boosted Pep 17% to £1.9m and revenue 5% to £1.77bn, and Clifford Chance, which increased Pep 9% to £1.85m and revenue 1% to £1.83bn.
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