The legal sector could be enjoying its most stable environment for some time, new research suggests.
A newly published survey by professional services firm Deloitte showed that the UK’s top 100 law firms saw fee income grow by 5.2 per cent in the second quarter, ending 31 October 2013, compared to the same period in 2012.
Growth came through a combination of factors, including an increase in rates, chargeable hours and fee earner head count.
Deloitte spokesman Jeremy Black said: “The results support recent economic data showing the services sector as a key engine for growth in the UK economy.”
Half-year results were consistent with those for the second quarter at 5.7 per cent average growth. Deloitte said: “This consistent performance suggests a more stable environment for the sector than that seen for some time. Looking ahead, law firms are forecasting a strong 8.4 per cent year-on-year increase in fee income for Q3 and 6.1 per cent annual growth.”
Mr Black concluded: “The sector has achieved a strong first half performance and is well positioned to build on this in the second half. Hopefully, this is the start of a steady rise in activity for the domestic market after a prolonged period of stagnation.”
While the survey looked at the biggest firms, a more positive economic environment generally is likely to offer opportunities to legal practices of all sizes.
Legal practices looking at ways to develop their firms and maximise competitiveness may find it helpful to discuss their options, and the financial issues involved, with professional advisers specialising in this area, such as the Milsted Langdon team. For more information, please contact us.