Allen & Overy profit soared past £1bn before merger with Shearman

Legacy law firm Allen & Overy profit before tax jumped nearly 20 per cent to £1bn before the merger with US firm Shearman & Sterling.

The merger of the highly anticipated law firm A&O Shearman went live in May. Now the firm has released the results of its legacy arm Allen & Overy (A&O).

Revenue rose modestly by 3.4 per cent to £2.2bn for the financial year ended 30 April 2024. The former magic circle firm surpassed the £2bn revenue mark for the first time last year.

Profit before tax rose by more than 17 per cent to £1bn. A&O profit per equity partner (PEP) jumped to £2.2m for its 600 partners, up more than 21 per cent from the £1.8m recorded in the previous year.

The figures were an improvement on the prior year. A&O reported a slight dip in profit and a near seven per cent drop in PEP over the 2022/23 financial year.

The firm credited the profit jump to the sale of its majority stake in its legal risk management business Aosphere, to UK private equity firm Inflexion and US investor Endicott Capital.

Commenting on A&O’s results, Hervé Ekué, now global managing partner of A&O Shearman, said: “In the year leading up to the completion of our merger, we’re pleased to report positive growth for the firm. This is testament to our strategic focus on diversification across regions, practices, and sectors.”