Revenues down at Allen & Overy

first_imgHalf-year revenues at magic circle firm Allen & Overy fell by 7% as the City giant became the first to announce its financial performance results over the past six months. Revenues fell from £548m to £511m during the six months to 31 October. More than half of the firm’s turnover was generated outside the UK. The firm said that it has benefited from increased demand for high-end litigation, restructuring and regulatory work. For the year ending 30 April 2009, revenues at the firm rose 7% to £1.09bn from £1.02bn in 2007/08. Over the same period, profits fell 4% from £447m to £431m, while profits per equity partner fell 9% from £1.1m to £1m. Managing partner Wim Dejonghe said of the half-year results: ‘As expected, market conditions remain challenging for us and our clients. Despite last year’s drop-off in activity carrying over into the first few months of this year, we have recently seen an increase in our activity levels. This is highlighted by our involvement in some high-profile international instructions, such as the sale of Gatwick Airport, the government of Abu Dhabi’s bank bailouts and each of the first four major UCC foreclosures on landmark properties in the US in 2009. ‘While everyone adjusts to the new size and shape of global markets, demand for high quality legal advice remains. Now we have our capacity right and have improved cost controls, our increased activity levels mean we are cautiously optimistic about what lies ahead. We have made significant strategic investments, such as the recent lateral hires in high yield and litigation, and where we see further opportunities to improve our position we will continue to invest.’last_img read more