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Australia leads HFW’s FY22 results with 8% growth
Global law firm HFW is on a “strong growth trajectory” in Australia, with revenue generated here strongly outperforming the firm’s revenue worldwide in the last financial year.
Jerome Doraisamy
Earlier this year, HFW Australian managing partner Gavin Vallely (pictured) spoke on The Lawyers Weekly Show about why Australia is such a big part of the global firm’s growth strategy. Sector-focused growth is helping the firm flourish here, he said, and it could well grow by 50 per cent in the next two years in Australia, he proclaimed at the time.
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Now — following its FY21 results, in which $232,000 profit per lawyer was generated — the global firm has released its FY22 results, showing that Australia is a significant driver in HFW’s worldwide performance.
Globally, revenue per lawyer climbed 1 per cent to £417,000 ($716,000, as per the exchange rate on Tuesday, 16 August).
Firm-wide revenue dropped 0.8 per cent to £198.7 million ($341.7 million), and average profit per equity partner (PEP) dipped slightly by 2 per cent to £669,000 ($1,148,670). However, this still marks HFW’s second-highest-ever recorded PEP by financial year, beating out the third highest — set in FY18 — by £125,000 ($214,624).
HFW’s revenue and PEP have both increased by at least 40 per cent since FY15, the firm said.
In Australia, however, revenue has increased by almost 8 per cent in the last financial year.
The firm, it said, is now looking to replicate this growth across its international network, spanning offices in the Americas, Europe, the Middle East and the Asia-Pacific region.
The news follows the release of FY22 results by Clyde & Co, where Australia is now that global firm’s third-largest country by fees generated; Ashurst, which saw a 12 per cent revenue increase; Clifford Chance, which saw equity partner profits rise by 10 per cent; Herbert Smith Freehills, which recorded close to $2 billion in revenue; and Pinsent Masons, which saw a PEP increase of 16 per cent.
Mr Vallely said: “We have been on a strong growth trajectory in Australia, and it’s really pleasing to see the results of the firm’s commitment to building our Australian business.
“We are continuing to actively pursue opportunities across our industry sectors and complementary service areas to service our clients’ requirements.”
HFW global managing partner Jeremy Shebson added: “To have achieved the two best financial performances in the 140-year history of the firm during what has been an extremely challenging period is a real testament to everyone at HFW.
“Having taken a prudent approach to managing the business throughout the pandemic, and to a certain extent putting our growth on hold, we are now looking to really ramp things up.”
And HFW global senior partner Giles Kavanagh proclaimed: “Our goal is clear: we want to build a world-beating sector-focused law firm.
“We have ambitious plans to develop the range of services we deliver to clients across our sectors. We want to nurture and bring in the very best talent globally.”
