Mishcon de Reya has announced revenue of £255 million for the last financial year – an increase of 10% from the previous financial year. The firm has seen overall profit rise by 22% from £76m in 2021/22 to £93m in 2022/23. 2021/22 profits were impacted by the investment in the firm's planned IPO which did not proceed. Excluding these IPO costs in 2021/22, profits were up 6%.
The firm completed its merger with Taylor Vinters in January 2023, broadening and deepening its offering to the UK and global innovation economy. The firm has over 220 Partners and more than 750 fee-earners in total across our offices in London, Oxford, Cambridge and Singapore and through its association with Karas So LLP in Hong Kong. Over recent years the Group has expanded its service offering through establishing a number of ancillary non legal businesses: this strategy is bearing fruit with non-legal revenue up by 81% in 2022/23.
The firm is reporting overall profit as a key metric for the first time in place of Profits per Equity Partner (PEP) which it believes is a better measure of the performance of the firm. PEP has become too narrow, short term and misleading as a metric for a business as diverse as the MDR Group that now accommodates both a traditional law firm and many start ups. Overall profit and increase in profits are much better indicators of real, rather than short term, business performance.
Group Chief Financial Officer Matt Hotson said: "Our goal is create long term value – for our clients, our people and the society in which we operate. PEP is not a metric which is helpful in this context nor is it useful for a business like ours with a diversified offering of legal and non-legal services. Growth is a critical metric for us as is overall profit margin. However, it is equally important to recognise that these harder financial measurements do not tell the full picture of a business and that assessing the value we create for our clients, ourselves and society is critical in a business of our size and profile."
Managing Partner James Libson added: "This was a strong performance and shows the resilience of our business in a tough trading period. I am very pleased with the outcome and want to thank all of our people for their contribution. We will continue to deliver on the strategy outlined on our 10 year vision, recognising that success in the current environment – with all of its complex challenges and transformative opportunities – calls for strategic discipline alongside agile decision making and an appetite for innovation."
The Law Society Gazette