Host of top 30 firms post robust growth in first six months of year but a tougher ride expected in second half

Many of the UK's top law firms are reporting rising revenues for the first half of 2011-12, despite protracted instability across Europe and lingering fears of a double-dip recession.

At least five firms among the UK top 30 are set to unveil double-digit increases on last year's H1 results, defying concerns prompted by the sustained upheaval in the global financial markets.

Olswang looks set to be among the strongest performers, with an expected H1 revenue rise of more than 20% on the £40m figure the firm posted last year. The results come against the backdrop of a February launch in Paris and significant expansion of the firm's Madrid base, which opened in September 2010.

Allen & Overy today (10 November) announced an 11% rise in half-year revenues, with turnover up to £582m from last year's figure of £526m.

Meanwhile, both Ashurst and pre-merger Clyde & Co have posted 12% hikes, taking fee income over the period to £154m and £106m respectively.

Both firms attributed their growth to strong performances outside the UK, with Clydes reaping the benefits of its North American operations in New York, New Jersey and San Francisco, and Ashurst enjoying a strong six months across Europe and Asia.

Ashurst managing partner Simon Bromwich commented: "Our results are primarily down to revenues from outside the UK, with the firm's revenues from its international offices up 25% on last year. While corporate activity has been slow, areas such as restructuring and finance have been busy."

Elsewhere, Taylor Wessing expects to report a double-digit increase in revenues of up to 20%, though exact numbers have not yet been confirmed. The firm cited the implementation of its cross-selling programme as a key driver of growth.

Taylor Wessing managing partner Tim Eyles (pictured) commented: "We have focused on implementing our international strategy and global key client programme and we're reaping the benefits of being an international firm with a very active, globalised client base."

Outside of the top 30, DWF also today confirmed 14% growth at the half-year point, with total revenues rising to £45m. The firm cited 33% fee income growth in insurance as a key driver of the result.

Among other firms to report rising revenues, Pinsent Masons is expecting to see an increase of 6%-7%, with Herbert Smith, DLA Piper, Eversheds and SJ Berwin all expecting to post single-digit rises. Wragge & Co is expecting turnover to climb between 5% and 10%.

In the magic circle, Linklaters is set to post a revenue increase of 3%-4%, with the results coming after several large banking and restructuring mandates for the firm, while Clifford Chance expects a single-digit increase. Freshfields Bruckhaus Deringer is set to post flat H1 revenues, with partners blaming patchy transactional work for the static results.

Of the firms to have reported H1 revenues to date, Nabarro is the only one to confirm falling figures, with fee income down 4% on last year. The drop will take revenues for the six-month period to approximately £51m, £2.5m less than H1 2010-11.

Nabarro senior partner Simon Johnston commented: "The dip in turnover is partly due to the billing cycle on current transactions and, with the slight uptick in activity levels, we would have liked to have hit last year's number. We typically have a stronger second half, but the market continues to be uncertain and very challenging."

Despite widespread revenue increases, law firm leaders remain wary of financial turmoil during the second half of 2011-12, with some indicating that eurozone woes are likely to be felt in the New Year.

Bromwich commented: "Activity can be expected to soften significantly in the coming months and we are, therefore, cautious about the second half."

One Freshfields partner said: "The headwinds are still very much there and things are pretty tough. I'd be surprised if other firms feel differently. It is not likely to get much better in the second half of the year and I think it's time to batten down the hatches."

Related: Partners undeterred by market volatility as 16% predict double-digit growth.