Mid-tier law firms’ PEP figures promise upturn

Mid-tier firms are predicting another strong year, with Addleshaw Goddard, Berwin Leighton Paisner (BLP), Nabarro Nathanson and SJ Berwin all anticipating sharp increases in profits per equity partner (PEP).

BLP, which reported a 40 per cent rise in PEP in 2004, from 303,000 to 425,000, is aiming to get it above the 500,000 mark. SJ Berwin is also expected to report bumper results, with an anticipated PEP of 500,000.

Research by Lawyer 2B’s sister title The Lawyer reveals that, further down the pecking order,Addleshawsand Nabarros are aiming for a PEP figure of 400,000.

However, Pinsent Masons is bracing itself for flat results due to the costs associated with last December’s merger between legacy firms Pinsents and Masons. The merged firm is expecting its PEP to be between247,000and 270,000, the same figures reported last year by Masons and Pinsents respectively.

The biggest City firms are predicting modest improvements in their year-end results. Herbert Smith is anticipating last year’s PEP of 700,000 to increase by between 5 and 10 per cent. Allen & Overy and Clifford Chance, which reported PEP figures of 609,000 and 562,000 respectively last year, are hoping for a marginal uplift. However, PEP at Lovells is likely to fall below 500,000.