The UK’s top 100 law firms achieved reasonable growth in the final quarter of the 2011 financial year with a 6.3 per cent increase in fee incomes, reports Global Legal Post.
Big Four business advisory firm Deloitte reports that in the quarter ending 30 April 2012, the moderate growth was predominantly driven by a 5.6 per cent increase in fee earner headcount, with an increase in fees per fee earner of 1.1 per cent.
The results are largely in line with a relatively strong showing from the UK’s legal sector. ‘The figures for the year show a positive level of fee generation, especially when considering the current financial climate,’ said Jeremy Black, partner in Deloitte’s professional services group. ‘Nevertheless, firms have continued to face challenges as a result of intense competition, pressure on rates, and a transfer of risk through the increased demand for fixed fees.’
Deloitte’s research also found that, on average, law firms are expecting growth to continue over the next year at a similar rate. They are forecasting an increase of 6.7 per cent for first quarter and an annual fee income increase of 5.7 per cent.
Mr Black commented: ‘Firms are predicting a modest rate of growth for the coming financial year. It is not surprising that the legal sector remains cautious given the broadly stagnant domestic marketplace and questions over the future of the Eurozone.’
