Turning the web page on final yr’s disappointing monetary efficiency, when income nudged up by simply 1% and revenue per fairness accomplice (PEP) stayed flat, Travers Smith at the moment (29 July) introduced record-breaking outcomes for 2023-24.
Income handed £200m for the primary time, reaching £215m —a virtually 10% enhance from final yr’s £197.5m.
PEP, in the meantime, climbed 18% to £1.3m – the very best the agency has ever recorded, with revenue up 22% to £77m.
Andrew Gillen, the agency’s senior accomplice mentioned the outcomes with Authorized Enterprise. ‘The outcomes have been in keeping with the excessive expectations we set for ourselves, but it surely’s at all times satisfying, particularly when some areas of our enterprise confronted difficult markets,’ he stated. ‘Reaching the excessive expectations we set for ourselves is at all times rewarding.’
The agency’s progress was broad-based, with sturdy performances throughout core sectors together with disputes and investigations, company, M&A, non-public fairness, and asset administration.
Managing Accomplice Edmund Reed (pictured) stated: ‘Our method is about sensible, incremental enhancements – making small changes to reinforce effectivity slightly than any main modifications.’
Lately Travers has navigated a sequence of challenges, together with a number of senior departures, together with company accomplice Richard Spedding, who moved to Linklaters in Might; Doug Bryden, previously head of setting, operational regulatory, and co-head of ESG and affect, who joined Freshfields final October; and personal fairness companions Ian Keefe and George Weavil, who moved to Goodwin in April.
Addressing the departures, Gillen stated: ‘Our continued success in non-public fairness and different areas displays the robustness of our platform. Departures are a pure a part of a dynamic market, however they haven’t considerably impacted our operations. Our latest lateral hires underscore the enduring enchantment of our agency.’
Travers made a number of additions over the past yr, together with strengthening its funds group with the hires of Proskauer Rose lawyer Tosin Adeyeri as a accomplice final October and Blackstone European authorized counsel Joel Grossmark in June. The agency additionally introduced in Watson Farley & Williams accomplice Ryan Ayrton into its cross-practice infrastructure sector group, in a transfer introduced this month.
The agency additionally made administration modifications, with Gillen elected senior accomplice in November and Heather Gagen, Tim Gilbert, and Susie Daykin taking up as heads of dispute decision, employment, and pensions respectively. As well as, Travers promoted six new companions and elevated 11 legal professionals to senior counsel, whereas rising newly certified salaries by 9% to £120,000 and enhancing trainee packages.
On sustaining competitiveness, Reed stated: ‘Our complete method – combining aggressive pay, bonuses, advantages, work high quality, tradition, and profession growth – ensures our general bundle stands out. Our decrease turnover fee in comparison with the market common and profitable lateral accomplice hires are a testomony to our agency’s attractiveness in any respect ranges.’
Notable work for the agency has included advising AlpInvest Companions on its new European semi-liquid, evergreen non-public markets technique, guiding Zegona Communications in its €5bn acquisition of Vodafone Spain, and issuing proceedings alleging abuse of dominance in opposition to Newcastle United on behalf of Sports activities Direct.
Reflecting on the previous yr, Reed stated: ‘I’m thrilled to see sturdy efficiency throughout all areas of our enterprise. Even in difficult markets, particularly inside M&A, we’ve managed to safe spectacular mandates regardless of a harder financial setting over the previous 12 months.’
He concluded: ‘The scenario is clearly bettering. It feels way more constructive now in comparison with this time final yr, and I’m optimistic that the present monetary yr will proceed this upward pattern.’
Elsewhere, Stewarts, has additionally posted a powerful set of outcomes displaying income up 12% to £95.2m. PEP is up by greater than 16% to £1.42m, with £1.82m paid to the agency’s highest earner, and simply over £753,000 on the backside of the fairness ladder – up from £1.7m and £592,000 respectively.
The efficiency marks a bounceback after final yr’s outcomes noticed income fall by 25% and revenue plummet by 56%.
‘I’m happy to announce a stable set of economic outcomes with progress in each income and revenue as in comparison with the prior yr’, stated managing accomplice Stuart Dench in a press release.
‘As a disputes-only legislation agency, our income is non-linear, and this represents a superb core earnings efficiency and is our second highest income yr. We now have made vital investments in instances over the previous yr together with DBA and CFA mandates. We invested in our folks, making six lateral hires and selling six to the partnership.’
Stewarts has lengthy harassed that its disputes-only mannequin means progress will probably be non-linear, and final yr’s decline got here off the again of a massively spectacular 2021-22 that noticed income rise by 43% to greater than £114m and revenue soar by 93% to hit £58m. The agency’s five-year income progress fee now stands at over 38% primarily based on the figures reported in 2019’s LB100 – up two proportion factors on its 2018-23 fee of 36%, however nonetheless a sight under its 2017-22 fee of 46%.
In dialog with Authorized Enterprise, Dench stated: ‘We’re happy with the outcomes as a result of they present the depth and variety of our earnings. We’ve continued to spend money on a powerful portfolio of DBA and CFA instances, which might help very sturdy monetary outcomes sooner or later.’
‘Our imaginative and prescient is that by 2030 we would be the UK’s main disputes agency in every of our follow areas.’
He added: ‘We wish to add additional power and depth in commerical litigation and worldwide arbitration. We’re additionally taking a look at patent disputes, tech disputes, and disputes regarding AI and cyber – the linking theme is disputes in rising sectors of the economic system.’
One other agency to unveil sturdy outcomes for 2023-24 is Stevens & Bolton, which has posted double-digit will increase in income, revenue, and PEP in its a hundred and fiftieth yr.
Income for the 11 months to 31 March 2024 was £38.8m – up 20% on the identical 11-month interval 2022-23. Annualised figures confirmed income up 18% to £42.3m, revenue up 31% to £16.7m, and PEP up 22% to £360,000, with £750,000 on the high of the fairness unfold.
‘I’m delighted that our outcomes so clearly mirror the arrogance positioned by our purchasers in our proficient and cohesive group of companions and legal professionals’, stated managing accomplice James Waddell in a press release.
Chief working officer Doug Williams added: ‘Whereas the agency has demonstrated constant and sustainable efficiency, we recognise the rising tempo of change within the authorized market and shifting wants of each our purchasers and our folks and have advanced our ambition and method to match.
‘This yr’s step-change in efficiency was supported by an elevated give attention to enterprise administration and is underpinned by funding in our skilled non-legal groups and working platform as we glance to push past conventional enterprise providers.’
The agency has introduced its monetary year-end ahead to align with the UK tax yr after HMRC modified its foundation interval guidelines to require all self-employed people and partnerships be taxed on the premise of the tax yr slightly than their very own monetary year-end, becoming a member of companies equivalent to Fieldfisher and Macfarlanes that have been additionally affected by the change.
The outcomes come after a rocky 2022-23 that noticed income dip by 1% whereas PEP fell by 16% as reported in final yr’s LB100.
anna.huntley@legalease.com
alexander.ryan@legalbusiness.co.uk
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