Clyde & Co clocks up 24th straight year of revenue growth but PEP dips
Income climbs by 1.6% to £650m, though PEP falls marginally due to increase in equity partners
Clyde & Co saw revenue grow by 1.6% in the last financial year to £650m, the 24th consecutive year the firm has increased revenues.
That growth jumps to 2.6% when measured on a constant currency basis, according to the firm, which generates more than half of its revenue outside the UK.
It has also reported a 4% increase in profit to £159m. However, profit per equity partner fell marginally to £708,000 from £715,000 in the previous financial year due to an increase in the number of equity partners.
The firm made 21 lateral hires in the 2021/22 financial year, alongside 23 internal partner promotions – more than half of whom were women.
It remains to be seen what impact the merger with UK insurance specialists BLM, which went live on 1 July, will have on PEP. Forty-five equity partners from BLM joined through the merger, while 140 salaried partners became legal directors upon joining the firm with some given the opportunity to apply for a newly created role of salaried partner within the UK casualty team.
The combined entity has added an extra £90m of revenue, making Clydes a £740m business with 60 offices globally and 2,600 lawyers.
Commenting on today's results, Matthew Kelsall, Clydes' CEO, said: “Our results over the past year speak of a firm in good health and show the benefits of our well hedged business. Growing for the 24th year in a row is a huge testament to the continuing strength of our business model and professional management structure not to mention the reputation we have as leaders in our core sectors.
“We are a firm that is ambitious and bold in our approach to growth, which the merger with BLM underlines. Looking forward we are focussed on further strategic expansion, investment in technology and our people, as well as a renewed focus on legal delivery and innovation.”
The firm has added a number of new global offices over the past year, including in Phoenix, Las Vegas, Denver, Vancouver and most recently in Santiago in Chile.
More than half of the firm’s revenue (56%) was generated outside of the UK. North America accounted for 22% of income, followed by Asia-Pacific at 14% and the Middle East and Africa at 12%. Its Australian business was a notably strong performer, becoming the firm’s third largest country by fees generated.
Carolena Gordon, Clyde & Co’s senior partner, said: “For the past two years our people have worked hard for our clients and the firm in what have continued to be difficult circumstances.”