Macfarlanes Reports Revenue Increase While Partner Profits Remain Unchanged
Macfarlanes has announced its financial results for the 2025 26 fiscal year, revealing a steady performance in partner profits despite a rise in overall revenue.
The firm recorded a revenue of £389.5 million, reflecting a 5% increase from the previous year. Operating profit also saw a modest rise of 3%, reaching £212 million. However, profit per equity partner (PEP) has remained unchanged at £3.1 million.
Despite this static figure, Macfarlanes' average partner earnings continue to surpass those of several Magic Circle firms. Notably, Linklaters reported a PEP of £2.48 million, Clifford Chance at £2.3 million, and A&O Shearman at £2.2 million.
Damien Crossley, who assumed the role of senior partner earlier this year, characterised the year as a transitional period for the firm, yielding a satisfactory outcome. He acknowledged the challenges faced in the market and indicated that the firm used this time to implement changes aimed at future success.
Crossley highlighted the firm's strategic focus on four key areas: Private Capital, Private Wealth, M&A, and Disputes. He noted that Macfarlanes has reinforced its commitment to independence and has restructured its practice areas to better align with perceived market opportunities. The firm has also invested in its workforce and technology to enhance client service, alongside the establishment of a representative office in New York.
In terms of significant transactions, Macfarlanes has been involved in several high profile deals over the past year. These include advising Spanish banking group Banco Sabadell on the proposed £2.65 billion sale of TSB to Santander, representing Evelyn Partners in its £2.7 billion sale to NatWest, and assisting 17Capital with the $5.5 billion final closing of its Strategic Lending Fund 6.
The current results follow a strong performance in the previous financial year, during which Macfarlanes' PEP surpassed the £3 million mark after experiencing a 20% increase.