Freshfields: Revenue passes £2bn at Magic Circle law firm but profit cut
Profit at Magic Circle law firm Freshfields was cut during its latest financial year despite its revenue passing £2bn for the first time.
Freshfields has reported a pre-tax profit of £668.9m for the 12 months to 30 April, 2024, according to newly-filed accounts with Companies House. Profit before partners’ annuities increased from £497.8m to £675m.
The latest total comes after the firm’s pre-tax profit stood at £726.3m at the end of its prior financial year.
However, the new accounts also show that Freshfields’s revenue jumped from £1.79bn to £2.12bn over the same 12-month period.
In Europe, the firm’s revenue increased from £1.3bn to £1.56bn while it rose from £311.3m to £391.1m in the United States.
It also grew from £34.2m to £42.4m in the Middle East and North Africa however the firm’s revenue fell from £141.6 to £126.5m in Asia.
Freshfields has published its accounts with Companies House after announcing last year that it would no longer reveal its results along with its UK rivals in the so-called Magic Circle in the summer.
In July 2024, City PM reported that pre-tax profit at Allen & Overy jumped nearly 20 per cent to £1bn before the merger with US firm Shearman & Sterling.
Linklaters’ revenue also surpassed the £2bn mark for the first time during its latest financial year.
In May last year, City PM also reported that Freshfields had increased its newly qualified (NQ) lawyers’ salaries to £150,000.
The rise came after every magic circle law firm (including legacy A&O) had been paying their NQ lawyers a £125,000 salary a year in November 2023.
The £150,000 salary is not the highest in the market as US firm Gibson Dunn leads as it pays its London NQs £180,000 a year.
Freshfields trainee salaries (first year) also enjoyed an increase from £50,000 to £56,000 and second-year trainees’ salaries had a pay rise from £55,000 to £61,000.