The Magic Circle law firms show a decline in profits
Three of the most recognized law firms in the UK: Freshfields, Allen & Overy and Linklaters (known as the ‘Magic Circle’) have announced a fall in profits for the year ending 20 April 2020, due to the unpredictable consequences of COVID-19.
Freshfields revealed a net profit of £685 million, down from £688 million in 2019. At the same time, the profit per equity partner (PEP) fell from £1.84 million to £1.82 million. However, revenues grew by 3% to £1.52 billion.
Regarding Linklaters, its pre-tax profits dipped by 3% to £726.9 million and PEP fell by over 5% to £1.61 million.
In the case of Allen & Overy, the profit before tax dipped by 2,5% in comparison with the last year, and PEP fell by 1,7% to £1.63 million.
A different scenario has shown by Clifford Chance that reported a 5% increased in partnership profit (£666 million), and a 6% rise in revenue, from £1.69 billion to £1.8 billion. PEP grew by 5% to £1.69 million.