Bloomberg News

Allen & Overy Revenue Rises 6% As Most Fees From Outside London

July 02, 2012

Allen & Overy LLP, the fourth-largest member by income of the U.K.’s so-called magic circle firms, reported a 6 percent rise in revenue, bringing in 1.18 billion pounds ($1.85 billion) for the 2011-12 financial year.

Offices outside the London headquarters accounted for more than 60 percent of its fee income for the first time.

“We made a conscious decision to grow our business in new and old markets,” said Wim Dejonghe, managing partner of the 2,700-attorney firm. “If you look at the long-term results they are pretty solid.”

Allen & Overy, which has advised bondholders including HSBC Holdings Plc (HSBA) and Deutsche Bank AG on Greece’s debt restructuring and SAP AG (SAP) on its $3.4 billion acquisition of SuccessFactors Inc, is the first of the five firms in the magic circle of Britain’s largest firms to report earnings. The other members who release financial data will publish the information later this week.

Profit increased by 7 percent from the year before to 486 million pounds. Profits per equity partner were unchanged at 1.1 million pounds as their number rose by about 7 percent from a year earlier.

“We have managed to grow the business without giving in on our margin,” Dejonghe said in a phone interview yesterday.

Allen & Overy opened new offices in Washington, Istanbul and Casablanca, Morocco this past period. Vietnamese outposts in Ho Chi Minh City and Hanoi will be inaugurated later this year, giving the firm 42 branches, Dejonghe said.

Slaughter and May, the fifth member of the magic circle, isn’t a limited liability partnership and so doesn’t release its financial details.

To contact the reporter on this story: Jeremy Hodges in London at jhodges17@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net


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