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The UK’s top 10 firms are breaking away from their rivals in terms of profitability, a new survey reveals.
The 16th annual law firms’ survey from PricewaterhouseCoopers LLP shows the top 10 firms achieved average profits per partner of £866,000 in the last year (compared to £781,000 in 2006), while the rest of the top 25 achieved £497,000 (compared to £478,000 in 2006).
Meanwhile, 78% of the top 10 recorded net profit margins of more than 30%, while only just over half of the 11–25 firms managed to reach this level.
Alistair Rose, leader of the professional partnership advisory group at PricewaterhouseCoopers LLP, says: “The top 10 firms are beginning to establish clear water between themselves and other firms, both in financial performance and utilisation.”
International expansion continues apace, particularly in China and France, with most of the top 25 firms now having a presence in those countries. Such expansion has paid dividends, with two-thirds of the top 25 reporting overseas fee income growth of over 15% and 37% recording more than 25%.
There are signs though that firms are looking to consolidate their positions, with the number of firms seeking expansion in almost all regions, with the exception of China and the Gulf States, being significantly lower than in previous years.
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