The wealth of information in law firm limited liability partnership accounts offers an insight into the state of health of the UK's largest law firms – as well as the warning signs they need to be looking out for.

In this video, Smith & Williamson head of professional practices Giles Murphy talks to Legal Week editor-in-chief Georgina Stanley about the key takeaways from the 2016-17 accounts of the UK top law firms, ahead of this year's financial reporting season.

Topics under discussion include:

  • How, despite an increased focus on efficiency and the introduction of new technology, operating profit margins are slipping year on year
  • The limited safety net firms have in terms of their cash position
  • How law firms compare to other professional services sectors
  • The impact of startups, external investment and the Big Four on the legal market
  • How firms can better prepare themselves for uncertain conditions and Brexit's impact

This is the second in a series of articles analysing the 2016-17 LLP accounts of the UK top 50, in association with Smith & Williamson. Other subjects under the microscope will include profit, debt and how the magic circle compares to the rest of the market.