City law firms flourish despite Brexit uncertainty
The ‘magic circle’ of four have all announced increased revenues
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.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
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.
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
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
-
Why Bhutan hopes tourists will put a smile back on its face
Under The Radar The 'kingdom of happiness' is facing economic problems and unprecedented emigration
By Chas Newkey-Burden, The Week UK Published
-
7 beautiful towns to visit in Switzerland during the holidays
The Week Recommends Find bliss in these charming Swiss locales that blend the traditional with the modern
By Catherine Garcia, The Week US Published
-
The Week contest: Werewolf bill
Puzzles and Quizzes
By The Week US Published
-
Why au pairs might become a thing of the past
Under The Radar Brexit and wage ruling are threatening the 'mutually beneficial arrangement'
By Chas Newkey-Burden, The Week UK Published
-
Brexit: where we are four years on
The Explainer Questions around immigration, trade and Northern Ireland remain as 'divisive as ever'
By The Week UK Published
-
Is it time for Britons to accept they are poorer?
Today's Big Question Remark from Bank of England’s Huw Pill condemned as ‘tin-eared’
By Chas Newkey-Burden Published
-
Is Brexit to blame for the current financial crisis?
Talking Point Some economists say leaving the EU is behind Britain’s worsening finances but others question the data
By The Week Staff Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published