Allen & Overy has grown its revenue by 10%, with more than half of that uplift contributed by the firm’s rapidly expanding U.S. business.
The firm’s revenue has neared closer to the £2 billion mark, hitting £1.94 billion – up from the £1.77 billion recorded the previous year.
In the previous financial year, the nearest its closest rival has come to £2 billion revenue is Clifford Chance, when revenue hit £1.83 billion, followed by Linklaters with £1.67 billion.
This year, A&O’s profit before tax jumped 9% to reach £900 million, meanwhile, while profit per equity partner (PEP) grew more modestly by 3% to reach £1.95 million.
U.S. revenue hit around £87 million, after a period of significant investment in the region. In the last financial year, the firm added 27 partners in the U.S., including 24 from outside the firm, and opened new offices in Silicon Valley, San Francisco and Boston, in addition to a presence in Los Angeles announced in early 2021.
Global managing partner Gareth Price said work in the project finance space had been among the drivers of U.S. growth, including the firm’s plum mandate advising on the $9.5 billion transaction for a new terminal at John F. Kennedy Airport in New York. The deal is the largest single-asset project financing deal in U.S. history.
Of the elite U.K. firms, A&O is the first to announce its results. The firm said in a statement that it had seen increased work borne from client demand to navigate “the energy transition, rise of private capital and technological transformation”.
By jurisdiction, the firm hailed particularly strong growth in the U.S., U.K., Europe and the Middle East.
As clients increasingly look towards ESG issues, A&O advise on several key mandates in that space during the financial year, including advising Saudi Electricity Company on a landmark $500 million untied green financing facility.
A&O’s Advanced Delivery & Solutions offerings, including its consulting and resourcing businesses, achieved revenue growth of 14%, the firm’s statement on Thursday added.
Earlier in July, A&O confirmed it would not be following in the footsteps of key rivals Clifford Chance and Freshfields Bruckhaus Deringer by raising pay for its newly-qualified lawyers, and that the base salary would remain at £107,500.
Looking forward, Price expects that current global economic headwinds including high inflation will “persist in coming months”, but that the firm remains confident that its “diversified business provides resilience and positions us well for the more challenging conditions ahead.”
In 2021, the firm announced it will leave its current home of One Bishops Square, to move into a newly-built space of at least 254,000 sq ft on Broadgate.