Global law firm Dentons has confirmed a 21% revenue increase to £205m for its UK and Middle East operation in consolidated accounts, lodged with Companies House, for the financial year ending 30 April 2018.
The figure includes six months of trading following the merger with Maclay Murray & Spens from 28 October 2017, and compares with £170m for the previous year. MMS, whose financial year ran to 31 May, contributed revenues of £15.8m and net profit of £3.6m for the partial financial year to 27 October 2017.
Dentons' net profit increased by 27% to £60m. Unaudited figures previously predicted revenue up from £166.4m to £203.1m and a 36% jump in profit per equity partner.
Staff costs increased 12.5% compared to the previous year, principally driven by the merger. There were 176 UK members of the LLP at the year end, and the highest paid member earned £1.4m.
An increase in net cash flows from operating activities was offset by increases in cash outflows in relation to investing and financing activities, but bank loans were reduced from £800k to £nil outstanding at 30 April 2018.
Jeremy Cohen, Dentons' CEO for the UK & Middle East region, commented: "This is our strongest ever set of financial results, following a year of exceptional performance across all areas of the business. It is particularly pleasing to have achieved this level of revenue and profit growth during a period of intensive integration activity arising from the merger with Maclay Murray & Spens. Since joining forces halfway through the financial year our lawyers in England and Scotland worked together on more than 1,000 client matters.
"Overall, the bigger picture for us is that the investments we have made in the UK & Middle East over the past few years are now really starting to pay off. Even without the merger our revenues would have grown 9% last year, but it's the five-year trend that tells the real story. Since 2013-14 our revenues have increased by 39%, with PEP rising 60%, as we have successfully pursued a strategy of creating stronger ties with key clients, developing a strong value proposition, and investing to grow market share."/