The good times are returning for law firms with fee income at its highest since the 2008 financial crisis, according to PwC’s 2014 Law Firm Survey.
Fee income is increasing at 80% of firms, compared with 63% last year, and 70% of all firms surveyed reported an above inflation rise in UK revenue.
Average profit per equity partner at the top 10 law firms broke the £1m barrier for the first time since 2008.
David Snell, partner and leader of PwC’s law firm advisory group, says: “A degree of stability and confidence is returning to the legal sector. Corporate activity has re-ignited, with a corresponding uplift in transactional work, and firms are busy again.”
However this confidence was not reflected across the board. All categories of firms have seen fee income per chargeable hour fall—by 8%, 3% and 9% for top 10, top 11-25 and top 26-50 firms, respectively—therefore firms may be busier but pricing pressures remain acute.
