Financial results 2023: Osborne Clarke reports 9% international revenue increase

International legal practice Osborne Clarke announces a revenue of €442m for 2022/23. This is a 9% increase on 2021/22 (which was €407m).

"Our teams have pulled together once again this year in an often turbulent market to deliver great results for our international clients and business."

Omar Al-Nuaimi, Osborne Clarke's International CEO, commented: "Our teams have pulled together once again this year in an often turbulent market to deliver great results for our international clients and business. We're on track to hit €500m turnover by 2025, while delivering on a number of key investment programmes to help us reach our target.

"Our 3D strategy, centred on outstanding legal expertise, sector understanding and transformation insight on the key trends shaping business, is working well with our clients who appreciate the layered support we provide on issues they're facing now and likely to be facing in the future.

"ESG continues to be essential to our business and it's embedded in our client plan. To support this focus, we're expanding and strengthening the legal expertise we offer clients across our international sector and service lines. I'm particularly proud of the progress we've made with our newest office in Poland, which has nearly doubled its headcount since launching just over a year ago.

"Our own digital transformation remains an ongoing priority and we're investing in talent and technologies to strengthen our international service offering and client experience."

UK

Osborne Clarke's UK income increased by 9% to £217.3m, from £199.1m in 2021/22. The firm maintained its financial stability with £25.7m in cash resources.

UK net profit remained broadly in line with last year at £74.7m compared to £77.2m in 2021/22. Profit per equity partner (PEP) was £687k compared with £796k in 2021/22.

"We've had another set of strong results in what has been a challenging economic market, which is a credit to the outstanding efforts and dedication of our teams across the UK.”

Conrad Davies, Osborne Clarke's UK Managing Partner, commented: "We've had another set of strong results in what has been a challenging economic market, which is a credit to the outstanding efforts and dedication of our teams across the UK.”

"While we increased our income, our net profit and PEP are down due to the tougher trading conditions, inflation and the significant but necessary investments we've made in our people and our business. We stand behind these targeted investments we've made to grow our headcount, increase the reward we pay our people and accelerate the roll out of various key change programmes across our legal operations. These investments will help us to attract and retain talent, strengthen our client offering and future-proof the performance of our business.”

Sectors and services

The firm's UK sector teams performed well with double-digit growth across five of its seven key sectors including energy and utilities; retail and consumer; financial services; life sciences; and mobility and infrastructure, while the technology, media and comms; and the built environment sectors were broadly flat against strong 2021/22 results.

All of the firm's practice groups grew over the last 12 months with Disputes and Risk seeing an increase of 24%, Advisory grew by 14%, while the firm's Business Transactions Group, and Projects, Real Estate and Finance Group both had 3% growth.

People

"Clients are front and centre in everything we do and we are recruiting and promoting key talent to drive forward our 2025 strategy. I'm proud that we are again giving all our UK colleagues a 4% profit share, because when the firm does well so do all of our people," said Conrad.

"Clients are front and centre in everything we do and we are recruiting and promoting key talent to drive forward our 2025 strategy."

The firm increased its investment in recruitment across key international sectors and services over the past 12 months announcing multiple Partner-level hires. These included life sciences patent litigation Partner Trevor Crosse and medical technology regulation expert Peter Rudd-Clarke; data protection expert Jonathan McDonald; technology disputes specialist Philip Tansley and corporate energy Partner Matt Lewy. A team of five pensions experts including Partners Chris Netiatis and David Hosford as well as pensions Partner Carol Dick also joined; along with private wealth specialist Patrick Wooddisse;  corporate Partner Louise Grzasko; head of corporate structuring and simplifications Tom Lewis; contentious financial services regulation Partner Benedicte Perowne; and incentives specialist Anika Chandra.

Recent international lateral hires included Head of Employment Pietro Scianna, Corporate Partner Filippo Palmieri and banking and finance regulation Head Nunzia Melaccio joining in Italy; Head of EU Law Roderick Nieuwmeyer joining in Belgium; dispute resolution Head Marcin Robenek and banking and finance Head Michał Markowski joining in Poland; IT expert Lina Boecker in Germany and environmental law expert Joanna Peltzman joining in France; while M&A specialist Linda Cai and ESG regulatory expert Sern Yang LIU joined as Counsel hires in Singapore.

"We're never complacent in our efforts to meet the individual needs of our people and ensure they feel a strong sense of belonging."

"We know our people are happier, and perform better, when they respect the values of where they work. They tell us that our friendly, supportive and kind culture sets us apart. We're never complacent in our efforts to meet the individual needs of our people and ensure they feel a strong sense of belonging. We make clear commitments so they know what they can expect to contribute to the firm and our clients, and what they will get from us in return," added Conrad.

The firm has a number of key programmes to support its commitments in creating a good working experience for all its people. It announced a new Wellbeing at Work Strategy as well as Race and Gender Action Plans to ensure accountability for manging work-related causes of poor mental wellbeing, and increasing the diversity in its business.

Reward and recognition are also key aspects of the firm's commitments to its people. The firm is transparent about base pay, offers performance bonuses up to 20%, pension contributions and, depending on firm performance, a profit share based on annual salaries. This year it is increasing long service awards, which range from £2k for a ten-year anniversary to £10k after 50 years' service. The firm is also introducing a discretionary long term incentive plans with bonuses up to 40% paid over a period of three years.

The firm's sustainability commitments are managed through the Osborne Clarke for Good framework, which structures its approach to responsible business and published its first report in 2022. The firm recently announced its long-term science-based target in the UK, to reach at least a 90% reduction against the 2019-20 baseline year by 2040. The firm's UK near-term target was validated by the SBTi in October 2022.

The firm is also currently working towards setting Science Based Targets across its international business, a project that Omar Al-Nuaimi is leading with the support of the firm's international managing partners.