News / Analysis
SW law firms second in UK for profit growth
New research published in NatWest’s Legal Benchmarking Report has found that law companies in the South West have seen the second biggest profit increase in the UK.
Measured in profit per equity partner among SME firms, that equates to £115,000, a 9 per cent growth and a significant increase on the £70,000 figure posted in 2013. Only London was ahead, showing a 10 per cent growth.
The region continues to perform well. Profit margin is reported to be 26 per cent on average, and confidence remains high.
Chris Rowden, Regional Director, South West & Wales Corporate & Commercial Banking, NatWest said: “It’s great to see firms in the South West continuing to grow – and compete with firms across the country. However, firms need to be aware of demands around labour and cash flow to remain competitive.”
“Overall, 2015 was another positive year for firms, with most measures of performance continuing to improve,” added Steve Arundale, Head of Professional Services at NatWest. “Signs indicate that the legal profession has now implemented the necessary changes to earn at historical levels. However, it will remain a question if firms going to be happy with this level of profit.
“Early indications suggest that 2016 could carry some performance challenges for many firms. Business levels witnessed in 2015 could be described as the new, post recession norm with many firms struggling to deliver growth levels achieved in the previous two years.”
Image – Shutterstock.
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