After a shuddering performance across the global economy ensured a slow recovery for UK law firms from the financial crisis, the 2013-14 financial year signalled a return to health for many firms. As the initial results from the UK’s 50 largest firms by revenue dripped in this time last year, they largely reflected a picture of positive performance, with combined revenue across the group climbing to a high of nearly £14bn. Average growth, meanwhile, was almost on a par with that seen in 2007-08 – shortly before Lehman’s crash – and revenue per lawyer figures based on these pre-audited results indicated that firms’ cost-cutting initiatives were bearing fruit.
However, beyond headline revenue figures it is becoming increasingly difficult to measure the success of leading law firms. A progressively diverse and expansive international footprint, near-shoring ventures, affiliated consultancy businesses and the introduction of large ranks of fixed-share partners as a result of recent tax rule changes will all have a role to play in fluctuating top-line numbers over the coming years.
