Despite a strong showing among the UK mid-market, analysis by Legal Week of the 2014-15 financial results shows combined revenue growth of just 1.6% as Euro exposure took its toll on performance.
Results from the 42 top 50 law firms to have released their 2014-15 performance reveal that overall revenue for the group was £16.2bn; a 1.6% increase on their 2013-14 collective turnover of £15.9bn. The average revenue across the group crept up to £384.6m from £378.7m.
The stunted growth reflects the impact of currency fluctuations on firms’ results in an otherwise resurgent deals market. As a result, performance was not uniform across the firms, with many of the more internationally facing firms growing only modestly in comparison to the domestically focused mid-market.
Eight firms posted double-digit revenue increases, whilst nine firms from last year’s top 10 have announced that their 2014-15 results saw an average 0.9% dip in revenue compared to last year.
Across the group as a whole, nine firms reported a contraction in revenue. While these all saw revenue fall by 4% or more, four of the nine saw turnover decline by less than a percentage point.
This year, many firms announced results on a constant currency basis, limiting the impact of currency fluctuations year to year.
Legal practices that are looking for ways to develop their firms and increase their revenue may find it helpful to discuss their options and financial issues with professional advisers that specialise in this area. For more information about how Milsted Langdon can help you, please contact us.