UK Law Firms Achieve 15% Growth In Q1

by Robin Pilgrim, LawAndTax-News.com, London

07 September 2007

The UK’s Top 100 law firms have kicked off the new financial year in style according to a new survey by Deloitte, the business advisory firm.

Figures from Deloitte’s Quarterly Legal Sector Survey (QLSS) show that UK law firms’ fee income grew by 15% for the three months ended 31 July 2007 compared with the same period last year. The news is even more impressive at the top end of the sector – with firms in the top 25 achieving average growth rates in excess of 20%.

This is the first quarter in which QLSS has been conducted. Deloitte invited the Top 100 UK firms to take part, with the majority of firms responding. QLSS is intended to act as a barometer of industry activity.

Jeremy Black, associate partner in Deloitte’s Professional Practices group observed that: “Last year was a good year for the legal industry in terms of revenue and profitability. UK lawyers have clearly been very busy well into the summer and if it carries on, this year could be record-breaking. The increasing numbers of businesses from the emerging economies choosing London as the market in which to do business provides an advantage to the leading UK players. This is further evidence of the continuing trend for London demonstrating its pre-eminence in legal services for the world’s major businesses.”

“On average, fees per fee earner are up by 7.6% across the Top 100 firms, but amongst the top 25 firms, figures are almost double that, at close to 15%.”

“UK law firms have continued to benefit from the ongoing levels of corporate activity. While the unsettled conditions in the credit markets have caused concern over the level of corporate activity and the outlook for the economy going forward, the legal sector remains optimistic,” Black stated.

The survey shows that on average, law firms expect to record annual fee income growth of 13%.

Black added: “The firms at the upper end of the industry expect to grow more quickly. Our results show an expected 15% growth rate at the very top of the sector but the fact that all segments of the market expect double-digit growth is evidence of the health of the legal profession.”

“The QLSS provides, for the first time, regular up to date information on the performance of a significant segment of the legal sector. The results of the first quarter survey show no signs of any slow down in the level of activity in the legal sector.”

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