According to data published by industry publication The Lawyer, total turnover at the top 100 UK law firms climbed from £19.24bn to £20.13bn during the 2015/16 financial year, marking its highest ever level. Total headcount and total net profit also made gains, with the number of lawyers working within the top 100 growing 4 per cent to 54,924 and the accumulative bottom line sitting 4.7 per cent higher at £6.492bn. However, a separate annual bellwether study published by PwC has tempered the good news. The firm’s annual Law Firms Survey found that only 75 per cent of law firms in the top 100 reported top line growth this year, down from 82 per cent in last year’s report. The report also argues that higher headcounts should be interpreted cautiously, with many firms currently facing overcapacity: ‘Profit-per-equity partner and rate-per-hour are under pressure in a sector where supply outweighs demand,’ warns partner David Snell, adding that the ongoing uncertainty following the Brexit referendum will likely continue to exacerbate the problem.

Sources: The Lawyer; Law Society Gazette