Allen & Overy today announced resilient financial results for the year to 30 April 2016 despite market uncertainty slowing transactional work in the second half of the year.
Revenue up by GBP29 million (2.3%) to GBP1.31 billion (USD1.97bn, EUR1.79bn) – building on Allen & Overy’s unbroken record of revenue growth since the financial crisis.
Profit before tax slightly lower (-1.4%) at GBP562m (USD845m, EUR767m) due to IFRS accounting provisions for pensions and property costs – excluding these items, profits are flat.
Average profit per equity partner stable at GBP1.2m (USD1.80m, EUR1.64m).
Particularly strong performances in London (during the first half, followed by a weakening second half as Brexit began to inhibit activity), improving trading conditions in Europe and strong performances in the Middle East, Greater China, Luxembourg, Spain, Singapore and Australia.
Strong year for our global disputes and M&A practices.
Alternative delivery models continue to show strong growth and contribute to the bottom line – Peerpoint grew by 75% to 140 consultants following Asia Pacific launch; aosphere grew revenue by nearly 20%; and the Legal Services Centre in Belfast grew the number of legal professionals by over 20%.
Commenting, Andrew Ballheimer, global managing partner, said: “The year has seen mixed markets around the world. On the one hand we had an M&A boom in developed markets during calendar 2015, while on the other hand clients also had to contend with a slowdown in China, the collapse of oil and commodity prices and rising uncertainty over the UK’s referendum on whether to leave the European Union.
“In that context these are another set of solid results which highlight our people’s ability to contend with fluctuating market conditions and spot opportunities for growth. It also underlines the natural hedge provided by our geographic spread and the breadth of our expertise, which has enabled us to deliver an unbroken record of revenue growth since the financial crisis.”
During the year Allen & Overy advised on over 1,500 deals globally across M&A, debt and equity capital markets, loans and projects, over 25% more than its closest rival. Allen & Overy is also the only firm to have advised on over USD1 trillion worth of deals in each of the past five years.
It is this consistent ability to assist clients on deals and disputes across the globe that has underpinned this year’s results, despite changeable market conditions.
Andrew added: “As we move into an uncertain climate, the resilience we have built into our business in the variety of work we do, our strength across Europe and the rest of the world and our alternative delivery models put us in a strong position to help our clients, whatever challenges they face in the weeks and months ahead.”
For further information, please contact Campbell McIlroy, firstname.lastname@example.org, on +44 (0)20 3088 2783.