Herbert Smith Freehills today announces its unaudited results for the year ended 30 April 2023.
Headline figures include:
- FY23 saw our highest revenue, profit and PEP to date
- A decade of strong growth
- Revenues were £1.186 billion, 8% increase on the previous financial year (2021/22: £1.103 billion)
- Profit was £388.2 million, 2% increase on the previous financial year (2021/22: £381.2 million)
- Profit Per Equity Partner was £1,173,000, 1% increase on the previous financial year (2021/22: £1,163,000)
CEO Justin D’Agostino commented:
"This year has delivered our highest revenue and profit to date, surpassing last year's record result.
"This is the firm's 10th consecutive year of revenue growth.
"We have a well-hedged global business across a broad mix of geographies, sectors and practice areas – and our 'twin-engines' of transactional and contentious expertise keep the firm resilient.
"Our financial strength allows us to invest in our people, in our clients and in our infrastructure. This includes growing our private capital, energy transition and ESG practices – areas generating significant growth for our firm.
"The UK and US regions had an outstanding year, and we also saw good growth in EMEA. Even though the markets were tough this year in Asia and Australia compared with the strength of last year, we continued to advise clients on their landmark deals and their most complex disputes.
"We are achieving momentum in delivering Ambition 2025. Less than two years since we launched this strategy, our focus on our clients, core practices and priority sectors is having a positive impact.
"And as part of our strategic drive to attract and retain the best people, we have launched Life@HSF, the firm's most extensive, far-reaching 'employee value proposition' project to date. It articulates and puts into action what it means to be part of our firm.
"I am proud of all our achievements in the face of economic headwinds and significant change and challenge in many of our markets.
"We are still facing tough trading conditions, inflation is high and the cost of doing business continues to increase.
"But guided by our strategy and building on our strong momentum and resilience, we are looking forward to another successful year."
Key highlights include:
- Ambition 2025 – Great progress on our global vision and strategy, including investing in our core practices and technology; doubling down on our Strategic Choice growth areas, including our private capital, energy transition and ESG practices; and launching an employee value proposition project, Life@HSF.
- Promoted 32 new partners to the global partnership and made 11 lateral partner hires – most of the investments were aligned to the firm's Ambition 2025 strategy including in focussed growth areas such as the firm's private capital, energy transition and ESG practices.
- A disputes powerhouse – Recognised globally as the preeminent firm for disputes, ranking 1st in major legal directories and acting on landmark disputes, including leading in class actions, as well as the most high-profile and complex investigations for clients.
- A preeminent brand in M&A – We advised on over 210 M&A transactions totalling over US$86 billion in 2022/23 globally, and performed strongly in the completed M&A league tables: 1st in Australia, 1st in Asia Pacific, 3rd in the UK and 5th in Europe for 2022. We were the highest-placed non-US firm in Refinitiv's rankings of global completed deals in 2022.
- A leading international law firm for women in the partnership – We have 31% women partners, up from 18% since we first set gender targets in 2014. For key partner leadership roles, women now hold 31% of the positions compared to 16% in 2014.
- Leading for Impact – As outlined in our Responsible Business Report, we contributed over 70,000 of pro bono advice globally; continue to support The Earthshot Prize's innovators and entrepreneurs; and were the Principal Legal Partner of WorldPride 2023.