Birmingham’s reputation as a major legal centre has been boosted after two law firms with a big city presence posted strong end of year financial results.

The encouraging Eversheds and DLA Piper results come in the wake of news Birmingham is to be the new home for the Solicitors Regulation Authority, which will see 600 jobs moved to the city centre when it relocates from offices in Leamington Spa and Redditch.

Eversheds results for the financial year 2010-11 saw revenues holding up to match last year’s level of £355 million and net profit increased by three per cent.

In addition profit per equity partner (PEP) increased by seven per cent to £555,000.

Highlights included strong performances in a number of target growth areas, including commercial litigation, which saw growth of 21 per cent, financial services, up ten per cent and regulatory up 34 per cent.

The real estate team saw growth of 11 per cent, while the energy and health sectors grew by 33 per cent and 24 per cent respectively.

On the international stage the Asian and Middle Eastern operations saw respective growth of 22 per cent and four per cent.

Eversheds Birmingham senior office partner David Beswick said: “We are very pleased with these results and feel we have out-performed a lot of the market in actually increasing net profit over the last financial year.

“By looking at the cost line and taking costs out of the business we have increased profit.

“We are seeing business recovering but it is still a very tough market to operate in.

“We are not seeing the levels of business we saw in 2006 and 2007 and do not think they will return in the near future. The previous 12 months should be seen as business as normal.”

Mr Beswick said expansion into new parts of the world was one of the firm’s major achievements, highlighting a merger with a new Middle East partner.

“We are a global law firm and geographically we have seen strong growth in the areas you would expect,” he said. “We are one of the few law firms in the Midlands with a Chinese practice.

“There was also a merger with Middle East law firm KSLG to increase our spread. The power of the petroleum dollar is still there and they are a powerhouse.

“We have now got a broad base of offices with local lawyers there and are viewing it as an area for growth.”

In terms of growth closer to home Mr Beswick also painted a rosy picture.

He said: “Within our sectors we have seen that financial services have recovered and are seeing that as a future area of growth – following the crisis of a couple of years ago. Commercial litigation also had a strong period of growth.

“Some of the sectors such as energy and natural resources had some good client reappointments too.

“The Birmingham office is very strong in sectors such as financial institutions, engineering, TMT, energy and natural resources.”

Although he acknowledged there were challenges ahead, Mr Beswick said further growth was “on the agenda”.

“For the next 12 months there will be slow growth and I think the economic situation will remain tough,” he added.

“We are aware of issues in the public sector and strikes being talked about and the next 12 months are not going to be smooth but we think there will be a gradual increase in confidence and we are optimistic we can get growth into the business.

“Eversheds has a reputation for innovation, something which is vital, as is the quality of our staff and our clients, our experience in different sectors and our global reach.

“Innovation is the key to future growth. We have to keep growing and want to keep growing.

“We have focused on the cost line and now want to focus on the revenue line.”

With law firms gearing up for the new alternative business structures in October this year, when businesses other than law firms will be able to provide legal services for the first time, Mr Beswick said it would increase competition but added Eversheds was fully prepared.

“All law firms need to be aware of it and we have ben planning for it for the last few years,” he said.

“A number of law practices have said they are going for external investment. We have plans but are not pressing the button on any of them just yet.”

DLA Piper said it took further steps towards its ambition to be the leading global business law firm in 2010 and the early part of 2011.

It saw improved performances across all practice areas with particular regional highlights being Europe and the emerging economies in Asia. Both the UK and US grew revenue and exceeded budget expectations.

Total revenues were up by one per cent to £1.27 billion for the 2010 financial year, with profits increased to £503 million, while costs were down by 2.5 per cent.

The firm’s Birmingham office managing partner Russell Orme said: “Globally results are solid, showing satisfactory bounceback in terms of profitability for 2010/11. This is not particularly unexpected after significant cost savings over the last few years and global revenues holding pretty well despite challenging conditions.

“Locally our Birmingham office performance is consistent with the overall global performance of our business. Focus has remained the same, in particular delivering excellent value to our clients wherever they do business. Another strong team effort positions us well for the year ahead.”