Deloitte research shows revenue growth slowed in Q2 for top 100 firms
Growth among the UK top 100 law firms slowed in the second quarter of the current financial year. Figures compiled in professional services firm Deloitte's quarterly sector survey show modest revenue growth of 2.4% across the group during Q2 2010-11, which was set against 5% in Q1.
December 07, 2010 at 01:56 AM
2 minute read
Growth among the UK top 100 law firms slowed in the second quarter of the current financial year.
Figures compiled in professional services firm Deloitte's quarterly sector survey show modest revenue growth of 2.4% across the group during Q2 2010-11, which was set against 5% in Q1.
The quarter was particularly challenging for the mid-market, with figures showing that the 11-25 bracket by size saw fee income decrease by 0.3% compared to the same period last year. Meanwhile, firms in the 26-50 category recorded the largest increases, with an average of 6.7%.
Levels among the UK's top 10 law firms were more stable but growth still slowed from 3.7% in Q1 to 2.2% in Q2.
At the same time, the top 10 saw the largest growth in chargeable hours per fee earner, up 4.3%, compared to 1% in the 11-25 group and 1.2% across the top 100. However, the average increase in fees per fee earner was only 0.7%, indicating that firms are recovering lower rates than in previous years.
Deloitte associate partner Jeremy Black (pictured) said the numbers indicated fiercer competition among law firms and more pressure on fees.
He said: "The figures show how difficult it is for firms at the moment. Revenue growth was higher in the first quarter, so things are certainly slowing rather than continuing in that upwards direction. It looked like quite a tough quarter for law firms."
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