THE CITY was given its first hint of how the upcoming round of law firm results will look yesterday, when Magic Circle stalwart Allen & Overy posted a 2.7 per cent fall in turnover for the first half.
Turnover fell to £566m from £582m in the same period last year, though the firm said that with currency fluctuations stripped out turnover actually grew by one per cent.
“Market conditions will no doubt present further challenges during the second half,” said managing partner Wim Dejonghe. “But we are confident that if we maintain our focus and stay close to our clients, the underlying resilience of our business will stand us in good stead.”
The firm has worked on several big-ticket deals so far in 2012, advising Hitachi on its £696m purchase of Horizon Nuclear Power, and advising Hong Kong Exchanges & Clearing Limited (HKEx) on its £1.39bn recommended offer for the London Metal Exchange.
Meanwhile several mid-cap firms reported more upbeat results, with Wragge & Co announcing a revenue rise of 4.5 per cent from last year to £60.6m.
Nabarro cemented a return to growth with half-year revenues of £52.3m – up two per cent on 2011-12.
And DWF saw a massive 39 per cent hike in revenues, after a splurge of regional mergers helped it lift turnover to £59.3m.