Legal community feel the pinch
Aug 21 2009 By Peter McCusker, The Journal
IT’S been a tricky year for many of the region’s law firms, with at least 250 jobs being axed in the sector. Most of the region’s main commercial law firms have suffered.
Although those with diversified practice areas have, in general, fared better than those without, there is no question that 2009 has been a testing year.
The downturn has been felt most acutely in practice areas which rely on transactional work - dependent on the availability of bank and other funding.
Consequently, the buying and selling of land, commercial property, businesses and companies has been affected and this has led to many firms taking steps which, 18 months ago, were almost unprecedented in the sector.
Redundancies and measures, such as reductions in working hours have been implemented in many law firms in the region, as it has countrywide.
However, there are signs that activity levels are picking up, and the volume of commercial work is beginning to increase.
It is too early to tell what the longer- term effects will be on the region’s legal sector but there is more talk of cautious optimism in recent months than there has been.
By last month, Dickinson Dees had cut 150 of its 775 staff, Watson Burton axed 55 posts in June and 10 at the end of last year, Muckle cut 14 jobs last July and Ward Hadaway axed 21 last September.
However revenues appear to be holding up reasonably well, with Dickinson Dees most recent figures showing its revenues fell only £1m to £52.4m in the year to the end of March.
Muckle expects sales to be in line with the £9m, similarly, Watson Burton said it was "more positive about the market it works in than 12 months ago". It expects to post annual revenues in line with last year’s £23m.
Ward Hadaway hopes it can improve on its performance by next year after seeing revenues fall to £26.6m for the year to March 2009 from £28.4m a year earlier
Away from the commercial arena, it has been a good period for Winns Solicitors which has doubled its total staff numbers to 150, and more than doubled its turnover to £18m in the past two years, on the back of the launch of its accident management service.
Established in 2002 as a personal injury solicitors by Jeff Winn and Ghazala Bashey, it sustained modest growth until the launch of a new accident management service in 2006.
It has now sold 800,000 of its accident management policies and handles 1,000 claims a month.
One area that has seen an uplift as a result of the downturn has been employment law.
Newcastle firm Short Richardson and Forth has set out its stall to become a national leader in this field and it strengthened its team with the high-profile appointment of Dr John McMullen, who had previously headed Watson Burton’s Leeds office. Renowned for his expertise in the employment law field, Dr McMullen is one of several new faces in the legal category of this year’s North East Most Influential.
