City law firms have survived COVID-19 and 2020 in good shape, but many regional firms had a more challenging year, according to accountancy firm Crowe’s annual Law Firm Benchmarking survey.
Almost all City firms increased revenue in 2020, with more than a third growing by more than 10%. While profits decreased for 18%, more than 70% increased profit per equity partner (PEP).
Among regional firms, one quarter grew revenue by at least 10% but 41% reduced revenue. Almost 60% made less distributable profit. Average PEP fell by 6%.
Ross Prince, partner at Crowe, said: ‘The regional picture for 2020 is one of winners and losers―some firms are sweeping up business as others struggle.’
Once pandemic restrictions end, more than half of City firms expect employees to work remotely for up to 50% of the week. Regional firms are more cautious, with only 10% expecting remote working to continue and only on rare occasions.
