Britain’s biggest law firms are enjoying a rise in revenue, despite the dampening effect of Brexit uncertainty. The four biggest firms – known as the ‘magic circle’ – have all now posted positive results for the past financial year.
The last to report was Linklaters, which increased revenue by 4.8% in the financial year 2017-18, to £1.52bn. Profit per equity partner fell slightly to £1.54m.
The biggest upswing was recorded by Allen & Overy, where revenue rose by 4% to £1.57bn. Profit per equity partner was £1.64m. Clifford Chance increased revenue by 5% to £1.62bn, and its profit per equity partner rose by 16% to £1.6m.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
At Freshfields Bruckhaus Deringer, revenue grew by 5% to £1.4bn, with profit per equity partner up by 12% to £1.73m.
Income has been bolstered by two developments: legal work to bring global companies into compliance with increasingly complex legislation, and an increase of corporate takeovers.
Andrew Ballheimer, managing partner at Allen & Overy, told the Financial Times that his firm had benefited from a “bull run” in cross-border mergers and acquisitions.
However, says the paper, the results could have been even better. Analysis by accountants Smith & Williamson found the top 50 law firms in the UK now have to wait an average of 122 days between billing and payment.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
When these “lock-up” debts are added to work for which they have not yet billed, they are missing out on a total of £6.8bn, the company said.
Take our survey for your chance to win £100 John Lewis vouchers
