3 July 2018
Clifford Chance announces its 2018 financial results: focused strategy delivers strong results for third consecutive year
Our financial results for the year ended 30 April 2018 are:
- Revenues of GBP 1,623 million, representing growth of 5% year on year
- Partnership profit was GBP 626 million, up 13%
- Profit per equity partner was GBP 1.60 million, up 16%
- In Euros, these figures are equivalent to revenues of EUR 1,850 million, profit EUR 714 million, profit per equity partner EUR 1.82 million
- In US Dollars, these figures are equivalent to revenues of USD 2,175 million, profit USD 839 million, profit per equity partner USD 2.14 million.
- Revenues, partnership profit and PEP are the firm's strongest reported results to date
Three-year progress since the introduction of the firm's new strategy in 2015:
- 20% increase in global revenues – with 37% growth in both Americas and APAC
- 39% increase in partnership profit
- 43% increase in profit per equity partner
Matthew Layton, Clifford Chance's Global Managing Partner comments:
"I'm immensely proud of the firm's strong performance over the last financial year, and the cumulative progress since we implemented our ambitious strategy three years ago. Since 2015, we have achieved profit growth in every region and practice in our global network. Our growth in the Americas deserves particular emphasis as our investment in this important practice is evidently paying off.
Overall, these figures are testament to the firm's unrelenting focus on work where our unrivalled platform and expertise enables us to guide clients through game-changing opportunities and risks. Technology presents a formidable example, as it drives a pace of change that is faster than ever before. Businesses who understand this environment and are agile enough to adapt, will thrive; and our multi-disciplinary, global Tech Group is perfectly positioned to advise them.
Growth must, of course, be underpinned by discipline and the gathering pace of our Best Delivery strategy is evidence of our readiness to challenge ourselves constantly to deliver the greatest value, efficiency and innovation to our clients. Aligning with clients around this agenda is essential. I see huge potential for us to use our collaborative culture and deepening skills and expertise in this area to set new benchmarks for the industry."
Investing to support our vision of becoming the global law firm of choice
Americas: the firm is making significant progress in the Americas, one of its key priorities. Progress is driven by a clear strategy of playing to its existing strengths in areas such as asset finance, project finance, REITs, structured finance, insurance and investigations; while investing in targeted other areas, such as M&A, cyber, technology and civil litigation. The practice is strong both domestically and internationally, with 85% of US work originating in the US, and strong referrals into the network. It is further strengthened by nearly 60 US qualified lawyers regularly practising New York law in 11 Clifford Chance offices outside of the US.
Technology: the firm has a well-established reputation for advising leading players in the TMT sector. In late 2017, Clifford Chance extended its ambitions with the launch of a 400 strong, multidisciplinary Tech Group, to help businesses in all industries tackle the risks and opportunities that technology brings. The firm continues to invest in this area, with the hire of leading technology partner Luke Grubb to lead our Asia Pacific Technology Group based in Singapore. Technology expertise is now embedded into all parts of the organisation, supported by a global training programme. The Clifford Chance Tech Academy will equip everyone in the firm with the latest knowledge and expertise to advise clients in this new environment.
Best Delivery is a central element of the firm's strategy, with the understanding that to create the greatest value for clients, the firm must challenge itself to provide a service that is ever more robust, efficient, consistent and innovative. In the last financial year, Clifford Chance made significant investments in this area, notably bringing specialist expertise together in multidisciplinary hubs around the firm's global network. The Best Delivery Hubs combine knowledge, Continuous Improvement, technology and project and resource management experts. During the year, Clifford Chance also established a new low-cost, process and technology-driven legal centre in the UK, through the acquisition of the award-winning former Newcastle office of Carillion Advice Services (CAS). And today the firm has announced the next stage in its innovation and Best Delivery strategy, including a new governance structure and the creation of two new units, Clifford Chance Applied Solutions and Clifford Chance Create.
Client work highlights:
During the 2017/18 financial year, Clifford Chance advised:
- Mondelēz International in connection with the merger of Keurig Green Mountain and Dr Pepper Snapple Group, Inc; Mondelēz International will hold an approximately 13-14% stake in the combined USD 11 billion revenue company.
- BBVA, Spain's second largest bank, on the disposal of 80% of BBVA's real estate business in Spain to Cerberus for approximately EUR 5 billion. This is the second biggest property deal in Spain’s history.
- The sponsors and underwriters on China Literature's USD 1.1 billion IPO, one of the most oversubscribed deals ever in Hong Kong.
- Two game-changing results for Pfizer: prevailing on all main arguments, the German IP team settled a multi-million USD claim and a successful challenge by the London antitrust litigation team, in the UK Competition Appeal Tribunal, against a record fine imposed by the Competition and Markets Authority for abuse of a dominant position.
- Carlyle Group on AUD 1 billion acquisition of Accolade Wines, Australia and the UK's largest wine company by sales volume.
- Goldman Sachs and a group of Colombian lenders on the approximately USD 708 million multisource financing for the construction of the 4G Antioquia-Bolívar highway in Colombia, also known as Ruta al Mar. This is Colombia's first private initiative project to be financed internationally.
- Unilever on its USD 2.7billion acquisition of Seoul-based cosmetics maker, Carver Korea.