Addleshaw Goddard posts 18% revenue hike after year of expansion in Europe
Irish merger and trio of continental offices fuel income growth but PEP only inches up
Addleshaw Goddard has recorded its ninth year of revenue growth with income rising by 18% to £321m, helped by a busy year of expansion in Europe.
Total profit at the top 30 UK firm also rose – by a healthy 16% to £155m – although profit per equity partner (PEP) only edged up by 2% to £866k.
Having climbed by 23% last year, the firm’s PEP is likely to have been impacted by a rapid expansion of its partner ranks over the financial year, the tally having jumped by 15% to 348.
It secured 24 lateral hires, made 20 internal promotions, and absorbed a further 25 partners following its merger with Irish firm Eugene F.Collins in March.
A spokesperson said the firm “never managed the business for PEP and it has over the last year continued to make significant investments in the partner group”.
The Irish deal, plus the launch of offices in Luxembourg, Frankfurt and Munich, characterised a busy year strategically for the firm, which is also scaling back its presence in Asia with the impending closure of its Hong Kong office.
All six of its core sectors grew strongly with finance and projects, corporate and commercial, and real estate all recording double digit growth, according to the firm.
Its closing cash position of £136m for the year ending 30 April was a record and 26% up on last year.
Managing partner John Joyce said the growth was partly down to increased work levels across the firm and partly due to “further material people investments, most notably responding to client demand for a meaningful presence in Ireland and Luxembourg as well as growing Paris and Germany”.
Work highlights included advising Allied Irish Bank on the £600m sale of its SME business in Great Britain and ASDA on its separation from the Walmart Group. The firm said its count of FTSE 100 clients had risen to 47 from 43.
In terms of its ESG credentials, highlights included the fact that 39% of its trainee applicants were from less advantaged backgrounds, placing it second in the specialist recruiter RARE’s ranking, while it is a founding member of the Greener Litigation Pledge.
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