Mishcon de Reya spent nearly £12 million on preparing for its long planned initial public offering (IPO) during the most recent full financial year, its accounts have revealed.
The firm spent £11.7 million during the 2021/22 financial year relating to its IPO, according to its full audited annual accounts filed on Companies House.
The filing states that for the financial year ended 9 April 2022, Mishcon attributed expenses of £11,715,000 to “the preparation for a potential listing on the London Stock Exchange”.
The firm noted in the accounts that this figure included £2,623,000 payable to auditors, and provision against a loan of £5,889,000.
Mishcon’s operating profit grew from £73.6 million to £75.2 million meanwhile, nudging up by just over 2%.
Elsewhere, the highest remuneration for an individual at the firm was £2.1 million, compared to £2.078 million the prior year, while key management personnel were paid just over £17 million, an increase of nearly 5% on the £16.3 million paid out the previous year.
The firm also strongly improved its international revenue, which notably increased from £2,617,000 to £12,452,000. This likely reflects the firm’s recent association with Hong Kong disputes and investigations boutique Karas LLP, which occurred in September 2021.
The firm announced a 22% increase in its revenue to hit £230.7 million for the most recent financial year. Its profit per equity partner jumped by 11% to £1.05 million, restoring the figure to 2020 levels after a drop to £900,000 last year.
IPO plans were put on hold by the firm in June “for the foreseeable future”, but speaking to Law.com following the firm’s results, managing partner James Libson said that listing was still very much on the table.
He added that investors had been “impressed” with Mishcon’s proposals, and that he expected a similar level of interest should the firm return to an IPO.