London's Legal Week newspaper reports that LG’s PEP fell from £412,000 last year to £303,000, with fee income falling 3.4 per cent to £56m, down from £58m in 2010-11, with the firm fingering excess space in its new gleaming Thames riverside offices as the culprit.

Property costs

The result sees the firm outside the UK top 50 for the second year running. Senior partner High Maule commented: ‘We are maintaining our strategy of investing in our chosen jurisdictions, including in our newest office in Singapore. Whilst disappointing, the fall in PEP is principally due to increased property costs in London. These are now being addressed and we expect to conclude the letting of our surplus space shortly.’
The result will be especially disappointing for LG as, according to Legal Week, England’s top firms generally enjoyed a second year of growth.
Firms on average grew PEP by 4.2 per cent, pushing average PEP across the top 50 to £587,000, not far from an all-time high of £616,000 in 2008.

Retention rates

Meanwhile, the Law Gazette reports that newly-qualified lawyer retention rates have held firm at London’s magic circle firms.
Clifford Chance retained 48 from 62 trainees, while Slaughter & May took 42 from 48. There was also cause for optimism outside the magic circle, with CMS Cameron McKenna retaining 26 of 31 trainees.
Three firms reported 100 per cent retention rates: the London outpost of US practice Debevoise & Plimpton (six trainees retained); fellow US-based firm Jones Day (11 retained) and City blue-blood practice Farrers (10).