Early results for 2010-11 show firms moving back into growth

Many of the UK's leading law firms are on course to report increases in revenue over the first half of 2010-11, as the economic recovery continues to gather pace.

Allen & Overy (A&O) kicked off the reporting season on Monday (8 November), posting a 3% growth in revenues for the six months ending 31 October.

The increase, which takes turnover to £526m, up from £511m at the same point in 2009, makes A&O one of a band of firms, including Ashurst and Herbert Smith, reporting modest growth over the first half of the year, while a further handful of firms have seen revenues rise by double digits.

In the City, Ashurst's revenues are expected to be up around 2% on last year's figure of £135m, while Nabarro has seen turnover increase by 3% to £53.5m. Herbert Smith and Bird & Bird are expecting to see a similar percentage increase.

Norton Rose, meanwhile, has seen its H1 revenues rise by 9% over the period to just above £155m, on the back of strong performances in Asia and the Middle East. Clifford Chance partners are also expecting to see growth, although numbers have not yet been released by management.

Beyond the traditional City corporate practices, Barlow Lyde & Gilbert and Wragge & Co have both seen significant increases in revenues, with Wragges reporting fee income up by around 15% to approximately £55m. Meanwhile, Barlows has seen revenues increase by 17% over the six-month period, while Clyde & Co turnover is thought to be up around 10%. Pinsent Masons has seen a marginal increase in turnover, with revenues up by 1%.

However, a handful of firms have seen revenues dip in H1. Olswang expects to see revenues drop by 1%-2%, while Eversheds expects to see a 3% drop from last year's figure of £178m, with magic circle firm Freshfields Bruckhaus Deringer also expected to be slightly down.

Commenting on the results, A&O managing partner Wim Dejonghe (pictured) said: "Our industry follows the global economy and, as such, we see particularly interesting opportunities in emerging markets."

Results were mixed last year, with several City firms seeing revenues plummet during the first half of 2009-10.

For more, see Half a step forward – law firm growth picks up pace at halfway mark.