Law firms recovering from recession, reports Law Soc
updated on 17 May 2012
The country's law firms are beginning to show signs of growth after fee incomes dropped by 6.5% in 2009, according to research from the Law Society's Management Section (LMS).
The LMS annual Financial Benchmarking Survey shows that fee income among its member firms increased by 1% in 2011 - an encouraging sign that the sector is gradually recovering from the effects of the recession. The LMS also reports that the average net profit per equity partner increased by 2%, though the number of support staff per fee earner decreased from 0.65 to 0.61, saving more money per fee earner but also indicating the effects on employment of the collective measures taken by firms in the wake of the recession.
Jon Wotton, president of the Law Society, said: "The LMS financial benchmarking survey and the support that LMS provides to its members have had a key role to play in helping practices emerge from the recession through effective management. Now, LMS has added importance in the light of changes to the legal services market. With more competition emerging and more opportunities for practices as a result of the changes under the Legal Services Act, a robust management system is critical for any law firm looking to attract external investment or remain competitive."
