Our law men are the country’s ‘top guns’
Jan 2 2008 by Iain Laing, The Journal
LAW firms in the North-East and Yorkshire outperformed their rivals across the country last year as profits rose despite fewer working hours, according to a major survey.
The 16th Annual Law Firm Survey from PricewaterhouseCoopers reports a “fantastic year” for leading law firms across the country.
But North-East and Yorkshire firms have performed ahead of the average for the Top 25 firms in the country. Just over three quarters of the region’s firms posted growth in fees billed per partner in excess of 10%, compared to only 53% of the Top 25 firms.
Even more impressive is that all firms in the region responding to the survey have achieved more than 10% growth in profits per equity partner (compared to 65% of Top 25 firms). The highest charging firms also have the highest staff turnover.
Although the Top 10 firms are significantly ahead in terms of average fees billed per equity partner (£2,422,000 for 2007), the average for firms in the North was £1,532,000, only just behind the average for the Top 11-25 firms of £1,555,000.Peter Coward, partner, PricewaterhouseCoopers LLP in Newcastle said: “The survey indicates that the Top 10 national firms are beginning to break away from the rest in terms of profitability achieving average profits per partner of £866,000 compared to £497,000 for the remainder of the Top 25; the average for firms in the North was £333,000.
“However, the figures show that firms in our region are managing to achieve growth ahead of their main rivals amongst the 11-25 tier of firms. A key driver in the level of profits per partner has been the restriction on equity partner numbers.
“This year we have seen a complete about-turn in the North-East and Yorkshire, whereas last year firms in the North-East and Yorkshire went against the national trend with two thirds of firms increasing partner numbers, this year no firms in the region have reported an increase in numbers.
“Half the respondents in the North-East and Yorkshire decreased their equity partner numbers during the year and the other half kept them the same.”
