Lovells beats peers with revenue rise
CITY LEGAL giant Lovells has bucked the trend by posting a rise in 2009 turnover putting it ahead of peers, which have seen depressed revenue levels.
Income at Lovells for the year ended 30 April came to £541.8m, marking a two per cent rise on the previous year when income was £530.6m.
The firm, which has not included merger partner Hogan & Hartson in the financial figures, said the rise in turnover was a result of an increase in litigation work, which accounted for 34 per cent of the firm’s billings.
Unlike its competitors, Lovells was not overly exposed to the drop in M&A activity, according to Hogan Lovells chief executive David Harris.
“This has been a good year. The real strength has been through our counter-cyclical practice areas. Although there has been a fall off in transactional work, we have seen strong growth in litigation and a rise in restructuring instructions,” said Harris.
Profits per equity partner (PEP) at the firm rose by 13 per cent to £663,000 for the year. Lovells said the figure, which is a measure of partner’s shareholding in the business, accounted for certain costs related to the merger.
In May, Lovells and Hogan & Hartson made its trans-Atlantic tie-up official and re-branded as Hogan Lovells.
Harris said the two firms will combine finances and report on a calendar year next year.
Harris said: “As we look at the next few months, there appears to be a broad consensus that a slow and gradual recovery is underway, albeit at different speeds in different markets.”