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Hogan Lovells is changing the way it reports its financial results, in a push to more closely align the firm’s international partnership with its US arm.

In a break from previous reporting, the firm has filed results for its international limited liability partnership (LLP) – the UK-based legacy Lovells partnership, which is financially separate to the firm’s Americas arm – for the eight months to 31 December 2016.

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Rose Walker

Rose is News Editor at Legal Week and Law.com International. [email protected]

Law Firms Mentioned

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  • Hogan Lovells

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  • Hogan Lovells

/uploads/sites/378/2017/09/Hogan-Lovells-Firm-Sign-Article-201709191332.jpg" alt="" width="620" height="372" /></a> Hogan Lovells is changing the way it reports its financial results, in a push to more closely align the firm's international partnership with its US arm. In a break from previous reporting, the firm has��filed��results for its��international��limited liability partnership (LLP) ��� the UK-based legacy Lovells partnership, which is financially separate to the firm's Americas��arm ��� for the eight months��to��31 December��2016. From next year, the firm will��file results for the international LLP at the same time as its firmwide figures, with both sets of accounts��covering a calendar year.��Historically, results for the <a href="http://www.legalweek.com/sites/legalweek/2017/02/08/hogan-lovells-partners-outside-of-the-us-see-25-pep-increase-as-revenue-rises-8/">international LLP</a>��have��run to��the��30 April financial year-end more commonly used by UK law firms. The firm said the shift had been��made��"to align our accounting period with the way that we manage the business". For the eight months to 31 December 2016,��the international LLP took in ��492m. While an accurate��comparison with the previous year is complicated by the��change in reporting period and exchange rate fluctuations, the firm said that it represented a "notional year-on-year increase of 15%", and that��underlying revenue is "up by around 4%" when disregarding the impact of currency shifts. Profit for division among equity members��came in��at ��144.8m for the eight months,��while the firm���s net cash position improved from ��50.1m at 30 April 2016 to ��77.2m��at the end of 2016. According to the firm, the profit figure represents��"a notional year-on-year increase of approximately 19%", but if the effects of��currency fluctuation��were eliminated, profit before tax would be��"broadly flat" on the previous year. The accounts also show that the firm���s management team was paid ��9.5m for the eight-month��period,��compared to ��8m for the previous full financial year.��The firm said the��higher total pay figure was a result of��a change in the definition of the management team, with��board members��also now included alongside the firm's international management committee. The latest results come after the firm this��February announced that <a href="http://www.legalweek.com/sites/legalweek/2017/02/24/hogan-lovells-revenue-climbs-6-as-pep-stays-static/">global revenues had climbed by almost 6% to $1.925bn in 2016</a>, while profits per equity partner (PEP) stayed flat at��$1.253m. The transatlantic firm generated roughly 52% of its turnover in the Americas, with London and continental Europe��contributing��41%. London revenue growth slightly outperformed the firm's global performance, rising 7% to ��282m. The firmwide results came after��<a href="http://www.legalweek.com/sites/legalweek/2017/02/08/hogan-lovells-partners-outside-of-the-us-see-25-pep-increase-as-revenue-rises-8/">the last��accounts filed��by the��international LLP</a> ��� covering the 12 months to 30 April 2016 ��� showed non-US turnover rising 8% from ��591m to ��638m, with PEP up 25% from ��698,000 to ��879,000. Last month, Hogan Lovells announced that it is restructuring its global support function, with <a href="http://www.legalweek.com/sites/legalweek/2017/09/18/hogan-lovells-restructures-uk-operations-with-90-roles-cut-or-moved-to-johannesburg-and-birmingham/">90 London roles cut or��moved</a>��to its business services centres in Birmingham and Johannesburg. The firm is <a href="http://www.legalweek.com/sites/legalweek/2017/09/26/hogan-lovells-triples-birmingham-office-space-ahead-of-support-roles-restructure/">more than tripling the space it occupies in Birmingham</a>, in part to accommodate the new support staff. The firm has also offered��<a href="http://www.legalweek.com/sites/legalweek/2017/09/19/hogan-lovells-offers-voluntary-retirement-to-400-us-business-services-staff/">voluntary retirement to hundreds of its US support staff</a>, in a bid to shrink the ranks of its senior business services staff across the Atlantic. <

  • Hogan Lovells

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