City firms foresee slow growth but Q3 revenues rise 7% at top 100
The UK's top 100 law firms saw fee income increase by 7.2% year-on-year during the third quarter of 2011-12 according to new research, which shows firms are predicting slower growth for the coming financial year due to the ongoing economic uncertainty in the eurozone. Deloitte's latest legal sector survey, covering the three-month period ending 31 January, shows that while fee income increased in Q3 this year compared with 2011, the growth is down on last quarter, when the same firms reported an increase in turnover of nearly 10%.
March 08, 2012 at 07:03 PM
3 minute read
Deloitte research shows mid-tier firms lead on Q3 growth as litigation drives revenues
The UK's top 100 law firms saw fee income increase by 7.2% year-on-year during the third quarter of 2011-12 according to new research, which shows firms are predicting slower growth for the coming financial year due to the ongoing economic uncertainty in the eurozone.
Deloitte's latest legal sector survey, covering the three-month period ending 31 January, shows that while fee income increased in Q3 this year compared with 2011, the growth is down on last quarter, when the same firms reported an increase in turnover of nearly 10%.
Firms in the bottom half of the top 50 saw the strongest trading, with average revenue growth of 9.9%, while the UK's 10 largest firms saw an average increase in turnover of 6.5%, marginally behind the 11-25 category on 7%. Firms outside the top 50 reported average fee income increases of 6.2%.
The third quarter growth takes the aggregate rise in fee income to 6.5% across the first nine months of the current financial year for the top 100 firms.
Drivers for the growth include a 5% increase in fee earner headcount, with chargeable hours per fee earner climbing by just under 3%. Firms in the top 10 saw a slight dip in chargeable hours.
The results show significant discrepancies in individual performance, with one third of respondents seeing fee income climb by more than 18.5%, with a similar percentage reporting a drop of at least 4.1%.
Deloitte professional practices partner Jeremy Black (pictured) commented: "The results vary massively, heavily driven by geographies and the firms' practice mix. Litigation has continued to be a strong area, while energy is a strong sector. In contrast, corporate and M&A has been weak."
The survey also questioned firms on their budgeted growth for the 2012-13 financial year, with firms predicting revenues would increase by 4%-5%.
Black added: "The figures show an uncertainty among firms, as they are not budgeting for much growth. There is an expectation that the UK economy will see relatively slow growth for the medium term."
At last year's half-year stage firms including Allen & Overy, Taylor Wessing, Olswang, Ashurst and pre-merger Clyde & Co all posted double-digit increases in revenues, while Norton Rose and Pinsent Masons saw fee income climb by 7% and 6% respectively.
Clifford Chance (CC) senior partner Malcolm Sweeting said: "In the growth markets in Asia-Pacific, Latin America and Africa, levels of client activity are strong. In the West, we are seeing signs of confidence beginning slowly to return to the markets, not least as steps are taken to address some of the issues in Europe last year.
"This confidence, alongside continuing support for clients still working through the challenges of the past few years, means firms like CC will be presented with plenty of opportunities in the near term. The work is there – but it is different."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllAshurst Beijing Chief Representative Leaves for New York Boutique Sterlington
Baker McKenzie, Norton Rose & Other Top Litigators Foresee Rise in AI, Data & ESG Disputes
Axiom-Ince: SFO Charges Five, Including Former Head, Following Investigation
3 minute readSDT Upholds SLAPP Claim Against Osborne Clarke Partner Advising Nadhim Zahawi
3 minute readTrending Stories
- 1As 'Red Hot' 2024 for Legal Industry Comes to Close, Leaders Reflect and Share Expectations for Next Year
- 2Call for Nominations: Elite Trial Lawyers 2025
- 3Senate Judiciary Dems Release Report on Supreme Court Ethics
- 4Senate Confirms Last 2 of Biden's California Judicial Nominees
- 5Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250