Legal Benchmarking Report 2016June 23, 2016
In conjunction with our UK accountancy association, MHA, we are delighted to present a benchmarking review of UK legal practices, looking at results across 2015.
The report points to encouraging signs of growth for a second year, most notably through an upturn in the property and construction sector.
MHA Report highlights:
- Firms with more than five partners had achieved growth of between 13% and 27%, smaller firms and sole practitioners achieved growth of just 5% and 3% respectively.
- Sole practitioners were the only size of firm to increase their net profit percentage – from 25% to 29%.
- For the first time in four years, salary costs have increased or remained stable as a percentage of fees for all but the largest practices.
- Consistent reduction in debt and capital funding requirements over the last three years.
- More control over lock-up – in the largest firms, lock up equates to a value of £5.4m per firm, an improvement in lock up of 1 day would generate £42,000.
- Over the last three years, no increase in IT spend as a percentage of fee income.