The recent profitability tables of the top 50 UK-based law firms ( Legal Week 20 July) demonstrate that the fragmentation of the UK market which became evident a couple of years ago is now established.
The figures must be viewed with some caution. Figures in any one year may be distorted by special factors, including a premises move or the cost of partner de-equitisation. As an increasing number of firms become limited liability partnerships, audited figures will become available using similar accounting conventions, thereby enabling effective comparison between rival firms. In the meantime, variations between firms in profit per equity partner and revenue per fee earner of up to 5% can probably be discounted as ’rounding differences’.
