Around 200 firms responded to this year’s survey, ranging from one-partner to 25-partner-plus firms, with a combined income of nearly £1bn. It showed that median profit per equity partner increased for the fifth consecutive year by three per cent to £143,000. Median fee income was up over five per cent, and ranged from £620,000 per equity partner at the median to over £1m among the most profitable firms.

Taking out more

However, one concern is that partners at a quarter of participating firms took out more than they made in profits – up from a fifth. The report emphasises that a considerable sum should be retained to fund working capital in order for law firms to remain financially sound. 

Personal injury and criminal law ‘tricky’

Jon Cartwright of Hazelwoods, which conducts the survey, commented that most mainstream legal practices are in good financial shape, though ‘clearly some areas such as personal injury and criminal continue to be tricky.’ Source: The Law Society Gazette