MHA Legal Benchmarking Report 2018June 14, 2018
In conjunction with our UK accountancy association, MHA, we are delighted to present a benchmarking review of UK legal practices, looking at results across 2017. The review, undertaken by the MHA Professional Practices Group, reveals the need for firms to focus on organic growth, improving efficiency and billing processes as the sector faces the end of a three-year period of sustained growth.
Key findings from the UK report include:
- 2017 heralds the end of a three-year run of income and profitability growth
- The gap between the smallest and largest practices continues to widen
- Average lock up levels jump up by 3 to 17 days for many firms
- Cultural change in staffing and ownership structures in firms
- Continuing fall in return on capital for firms across the board
David Smith, Managing Director & Head of the Professional Practices Sector Group at Henderson Loggie explains:
“2017 has been characterised with a reduction in merger activity, uncertainty in the market partly arising from political uncertainty and the retirement of equity partners. Lower margin work in personal injury and public funded matters have been hit again with reducing fees and drop off in new instructions. Clients are increasingly prepared to shop around for more competitive pricing and fixed fees.”
If you would like to discuss any issues raised in the report or if you have any questions and would like to speak with a member of our team, please contact David Smith, or call us on 01382 200 055 to be put in contact with a member of our Professional Practices team.