Onto the revenue results of Australia’s top-tier:
- Minter Ellison Legal Group: $523.4 million (+4.1%)
- Freehills: $511 million (+7.1%)
- Mallesons Stephen Jaques: $491 million (-0.7%)
- Clayton Utz: $445 million (+0.6%)
- Allens Arthur Robinson: $444 million (+1.8%)
- Blake Dawson: $382 million (+6.7%)
Minter Ellison
On the healthier side of the ledger, Some immediate things jump out at us. Firstly, the “Minter Ellison Legal Group” includes the offices of Minter Ellison Rudd Watts in Auckland and Wellington, alone accounting for over 200 fee-earners. For BRW accounting purposes, Minter Ellison Rudd Watts is placed under the Minter Ellison Legal Group banner, together with the firm’s affiliate offices in Perth (now-defunct), Adelaide and Darwin. It is thus a bit of a furphy to think of Minter Ellison as Australia’s largest firm by revenue; it is a group of affiliate offices, each with its own profit pool, under a common banner. That’s not to say that growth of 4.1% isn’t a good effort, but the near-complete loss of the firm’s Perth office will far exceed that amount in revenue lost for the next financial year.
Freehills
Without question, Freehills is the stand-out top-tier performer in FY 2010/11. We base this assertion on the firm’s revenue results, its quality of work, but primarily on the treatment of its employees. Growth of 7.1% is an outstanding result, but this is especially the case because the firm never really suffered the GFC-related revenue decline experienced by rival firms. Last year, the firm’s revenue dipped 3%; the year prior to that, revenue was down 2.1%. Major competitor Mallesons’ revenue was down 10.5% and 5.1% over the same periods.
We asked Freehills for a comment on the firm’s outstanding results and a spokesperson said:
A significant factor in achieving this was the firm’s strategy during the GFC of avoiding lawyer redundancies. It meant the firm had people with experience to meet the needs of clients as demand increased and it was less effected as other firms scrambled to recruit in a tighter legal labour market.
There you have it. The only top-tier firm that made a concerted effort to retain staff at the depths of the GFC has found itself able to capitalise on the upswing in legal work. Hat-tip, Freehills. but we reiterate that we don’t want to see LPR undoing the firm’s good work.
Blake Dawson
By that reasoning, it could also be said that Blake Dawson has enjoyed an incredible year. Whilst it is certainly the case that Blakes has experienced comparative success, it is important to note that Blakes’ employee headcount has swelled by 4.3% (cf Freehills which lost 2.7%). We have heard several reports over the last year that Blakes was an “early mover” on recruitment and engaged in a significant amount of headhunting. This explains the firm’s ability to recruit in the tighter legal labour market mentioned by the Freehills spokesperson, but also goes some way toward explaining Blakes’ exemplary revenue results. Still, Blakes have in our view re-cemented their position as part of Australia’s “Big 6″ and this will be music to the ears of the parade of international firms apparently lining up for a “meet-and-greet”.
Stay tuned for our analysis of this year’s losers.
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Why so slow to congratulate Minters? No.1 for yet another yr is nonetheless impressive. Bit shocked about the Malles figure…
The only thing more impressive than Freehills results is just how well they played you guys. Some PR guy is laughing it up all the way to his bonus this year.
@ Anon #2
We were waiting for a comment like that. Maybe you’re right and we’ve been played, but If you had to pick a firm out of the top-tier to award a medal to, which would it be? We think Freehills are probably the best of a bad bunch (and it is not like there is daylight between them and second place), but we could be wrong. We’ve been the quickest news source to condemn the firm over its LPR, we broke the story of emerging star partner Tony Sparks’ departure, and we’ve regularly published stories that cast the firm in a negative light. We certainly don’t intend to play favourites, but if we had to recommend a firm to work at among the top-tier, right now it would probably be Freehills. Just looking at the firm’s estimated profit margin – which is significantly lower than its top tier competitors – gives a glaring insight into what life must be like at the firm. Junior lawyers are paid more. Partners aren’t as tight. The firm also took the courageous step of retaining staff while all of its top-tier competitors unmercifully wielded the axe.
If we’re wrong – and as Zyzz (may he rest in peace) would have said – “come back at us brah”
If i had to pick a firm out of the top-tier to award a medal to, I’d melt down the medal, make a spearhead with it, and ram it up each and every one of their ………
Agree with The Spy that Freehills is the standout performer and Blakes deserves a gold star too.
So why does MSJ keep winning the infamous CFO law firm award to which all the top tier firms aspire? Havent figured that one out in recent times.
Either Freehills or Blakes should be winners this year, surely?
It’s even more interesting when you consider the “close” links between Firm Spy writers and the good folk at the AFR / CFO Magazine. C’mon guys, time to encourage the panel of voters to give another firm a go for that award, eh?
There will be much laughter in the corridors of other firms if MSJ wins .. again. The fall of the Roman Empire is nigh.
The Spy @ 9:55pm,
For a moment I thought you were a Freehills partner, till I read the last sentence of your comment. Small but relevant correction regarding the quoted saying of Zyzz, son of Zeus, brother of Hercules and Chestbrah, God of Aesthetics – it’s “come at us bro”.
Does anyone actually believe that any firm chooses to have significantly lower profit margin than competitors? To pay junior lawyers more? Higher revenue, decreased growth and lower profit margin – odd equation.
Firmspy, good points. I must admit that I much prefer it when your posts are less snarky and more honest about pointing out good things. Keep them up please!
-Anon #2.
Are these official revenue figures or BRW estimates (or, most likely, a combination)?