UK Legal Industry Turnover Growth Plummeted to Four-Year Low in Q1
The Office of National Statistics figures include the last few weeks of March when COVID-19 began to impact the economy.
May 13, 2020 at 08:48 AM
2 minute read
Total revenue growth for the U.K. legal industry dropped to its lowest quarterly figure in four years during the first three months of 2020, according to new research.
The rate of combined turnover growth fell by 6.6% to £9.34 billion between Q4 2019 and Q1 2020, according to figures from the Office of National Statistics compiled by litigation funder Augusta Ventures. Its previous lowest point was in 2016 Q1 when it dropped 6.9% to £7.83 billion.
The statistics cover the final weeks of March, when the COVID-19 pandemic caused the U.K. to go into lockdown and began to impact the economy.
For the overall U.K services industries combined, turnover growth for the first quarter of 2020 was £53.5 billion, down 7.6% compared to the last three months of 2019, when both the legal and services industries had reached record highs.
Augusta recently published a report based on law firm LLP filings which found that 55% of 40 of the U.K. top law firms had insufficient cash on their balance sheet to cover one month's bills even before the coronavirus pandemic hit, while 38% could not even pay one month worth of staff salaries from its cash reserves.
"The legal industry in the U.K. had already started to see growth fall off before the pandemic hit," said Louis Young, managing director at Augusta, in a statement.
"U.K. law firms have seen significant revenue falls since lockdown began, Q2 will unfortunately be well below past quarters. Many firms are seeking support for their businesses – the provision of finance from external sources will be incredibly important to their survival as time progresses."
Research by accountancy firm Smith & Williamson recently found that the majority of the top 50 U.K. law firms had bank loans and overdrafts that outsized their cash positions during the last financial year, with only 12 firms operating with no debt at all.
|Read more
This content has been archived.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 All‘Are You Not Profiting From Postmasters’ Misery?’—Politicians Grill HSF, Dentons on Post Office Conduct
'Not a Good Look'—FCA Fines Barclays £40M But Accused of Incompetence
Gibson Dunn Sued by Crypto Client After Lateral Hire Causes Conflict of Interest
Australian Corporations More Concerned About Class Actions Risk, HSF Report Finds
3 minute readTrending Stories
- 1Jefferson Doctor Hit With $6.8M Verdict Over Death of 64-Year-Old Cancer Patient
- 2Seven Rules of the Road for Managing Referrals To/From Other Attorneys, Part 1
- 3What Went Wrong With Adeel Mangi's Long, Strange Trip Through the Judicial Nomination Process?
- 4Defense Counsel Turns $2.2 Million Broward Jury Verdict to $500K
- 5United Soccer League Scores General Counsel
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