The second 50 saw strong PEP increases, closing the gap between the group and the U.K. Top 50.

The second tier of the U.K.'s top law firms are growing their equity partner profits at a faster rate than their larger rivals, according to Legal Week's latest table of financial results.

The U.K. second 50 – the firms that rank 51-100 based on their revenues – saw their overall average profits per equity partner rise to £504,000 in the last financial year, up 19% from £424,000 the previous year. In comparison, the top 50′s average PEP figure grew by 4% to hit £750,000, amid greater competition with U.S. rival firms.

The average change in PEP among the second 50 was a 6.3% rise, compared with a 4.3% rise at the largest 50 firms. And 14 firms in the second 50 achieved double-digit PEP growth, compared with eight in the top 50.

Several firms saw steep rises. Bristol-based firm Thrings more than doubled its PEP to £212,000, despite the departure of just one equity partner. Intellectual property boutique EIP also nearly doubled its PEP to £400,000, amid a 22% rise in revenues. Meanwhile, PEP at Leeds-headquarted firm Walker Morris rose by 38.8% to reach £583,000.

Combined turnover at the second 50 firms rose 8% for the second year running, to reach £2.15 billion. The U.K. top 50 posted total turnover growth of 9.6% during the same period.

Click on table for an expanded version

Six firms grew their turnover by more than 20%, including three listed firms – Knights (51%), Ince (68.6%) and Keystone Law (35.1%) – as well as media and technology firm Wiggin (21.2%), City firm Bates Wells (22.5%) and EIP, which entered the second 50 for the first time with revenues of £27.5 million.

Just one firm – Blake Morgan – saw turnover dip, and then only by less than 3%.

But the strong figures could be threatened by continued economic uncertainty, according to some law firm leaders.

Making her predictions for the market during the next few months, Kingsley Napley managing partner Linda Woolley expects a slowdown in the medium term. She added this was likely "as slower global growth kicks in due to a reversal of the global economic cycle into recession, and as tailwinds caused by matters such as a reversal of the trend towards globalisation, trade wars, Brexit, China and so on, take effect".

However, Peter Lawson, chairman at Scottish firm Burness Paull, was bullish, saying: "The transactional market continues to be strong and activity in the oil and gas sector in the northeast is coming back – not in a big uptick way, but in a more steady fashion. As a sector it's very boom/bust, but I think it's rightsizing itself at the moment."

Click here for a PDF of the full U.K. second 50 table.

For a detailed breakdown of PEP figures across the UK's top 100 firms, as well as revenue, headcount and leverage figures, see the full rankings available through ALM Intelligence's Legal Compass.

With reporting by James Willer.