Turnover at Hogan Lovells International, which encompasses all of the firm’s operations outside of the US, rose 8% last year, while profit per equity partner (PEP) jumped 25%, the firm’s limited liability partnership accounts have shown.
The firm’s accounts for the year to 30 April 2016 show non-US turnover rising from £591m in 2014-15 to £638m, with PEP up from £698,000 to £879,000 as the average number of equity partners fell from 210 to 205.
The PEP figure compares favourably with the firm-wide figure of £817,000 Hogan Lovells reported for the 2015 calendar year.
The firm said the revenue rise was driven by a 2% increase in capacity, a 3% increase in activity levels and a 3% increase in realised hourly rates.
The accounts also show that profit and remuneration for the firm’s key management team remained broadly flat at £8m, compared to the previous year’s figure of £7.9m.
Staff costs, meanwhile, increased by 4% from £254m to £264m as total staff numbers rose from 3,034 to 3,125. Members’ capital increased by £1.8m to hit £50.6m.
The accounts also show the firm spent £1.9m on property fit-out costs and associated professional fees during the financial year.
The group improved its cash position, with £50.1m of cash and cash equivalents as of 30 April 2016, more than double last year’s level of £23.7m.
Earlier this month, Legal Week reported that Hogan Lovells partners are to pay in additional capital to the firm later this year, as part of a long-running initiative to boost the global firm’s capital reserves. Partners’ capital payments will increase by 7.5% per year for the next five years, equating to around £10m each year.
The initiative extends an existing plan drawn up in 2014, when partners agreed to increase their capital contributions by 7.5% in both 2015 and 2016. This year-on-year increase will now continue until 2021.