For this year's UK Top 50, Legal Week has spoken to law firm leaders across the market for their take on the key trends from 2016-17, as well as their plans for the year ahead. In this Q&A, Clyde & Co chief executive Peter Hasson discusses the firm's solid performance in a challenging market for insurance-focused firms

How was your year last year? "It was a relatively difficult year, economy-wise, with uncertainty around Brexit and Trump, and there was also continued client pressure to improve efficiency and value. Against that, we managed to grow revenue, taking us past £500m for the first time, and we increased profitability and maintained PEP. From that point of view, it was a continuation of what we have been delivering over a period of time.

"Globally, the insurance market is okay, but it is not a stellar time. The marine market has been the poorest it has been – it is at the bottom of the cycle. Our markets haven't been favourable, but our strategy goes to show that you can still make it work.

"This is the first year that we have seen a full year's contribution from our Simpson & Marwick merger in Scotland. We have made major investment in a new financial management system and developing our case management, because clients are making demands for better flow of information, and we need to be able to look closely at profitability information. We have also been expanding internationally, particularly in the US. We have also seen interest in new markets, so Latin America is emerging; we opened in Mexico, and the Miami office was similarly focused. We have also been hedging our position post-Brexit with an opening in Germany.

"Over a five-year period we have been growing at 12% compound. If we keep on, we will be starting to dominate our sectors, which is what we want to achieve as part of our strategy. A solid year from my perspective."

More generally, how do you think UK law firms have performed? "My impression is that it has been quite patchy, with different levels of performance from firms depending on the economy they were exposed to. I suspect we will be at the top end – I am not seeing anyone that has done spectacularly well in terms of revenues.

"The market conditions are being felt across the piste. If you happen to have been exposed to big transactions, you may have done quite well. For us, the key is steadily building the business over the years. We are pleased that last year we grew in every region that we have business in – our plan has always to be that we are making progress across the board, rather than being reliant on one practice."

Has currency inflation effected your results? "Currency movements added 5% to our revenue in sterling. Sterling flatters growth this year for everybody. That is something you have to be aware of, but the critical bit, even without the currency bit, is that we still had 9% growth. There is a positive element to that, in that doing work internationally from a UK base is now more cost-effective for clients."

Why do you think so many firms are cutting back partner and lawyer numbers? "It is a tough marketplace and people have being trying to reduce costs and improve profit levels. We are up 40 partners year on year, and the ability to increase partner numbers and keep profits at the same level is a critical factor in our expansion and success.

"We are very clear that we are focused on core sectors, people who build, move and dig up things, and our absolute core sector – insurance. We want to be the leading player in those sectors on a global basis and that requires having the right people in the right places. That drives us, rather than focusing on how to improve PEP. If you do the things that are right for your business, the results follow."

Which types of firm do you think have done well this year? "The firms that have done well are the firms that are clear on what they are trying to do. There is a long-term pressure on firms in the UK, where they are stuck trying to work out their strategy. We have decided that we are going to focus on core industries, and we are putting the office network in place to make sure we are where the clients need us. If you are unsure about what you are doing and are caught with an inconsistent client base, I think those are the firms that are coming under pressure and are struggling to drive revenue growth. They are the people that are cutting partner numbers to drive the firm from a financial viewpoint.

Why have mergers not paid off for some firms? "Merging is not a strategy, it is a means to a strategy, so if you are clear about what you are trying to achieve it can accelerate your position in the marketplace. Often, merger is seen as a panacea, where firms that are struggling come together. It is hard to judge the success of a merger in a year or two because there is always a big integration job; anyone who thinks they are going to merge and suddenly see marvellous results is doing it for the wrong reasons. Our merger with Barlow Lyde & Gilbert was probably one of the most successful I have seen, but you can only really judge that five years on."

What are the prospects for 2017-18? "There is still a lot of uncertainty around, and how clients respond to that will determine how the world moves. The real drivers this year will be the long-term trends like pressure from clients, demand for efficiency of service, demands to service clients in key locations. Rather than short-term views of markets. I think it will remain a tough market for the legal industry and particularly UK based firms.

"On the insurance side there has been an increase in natural catastrophes, which have been through a quiet period. You can see in Grenfell and Texas an increase in the level of insurance claims, and with insurance claims often litigation follows."

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