The report shows that firms experienced a median increase in income of almost six per cent, with revenues rising across most areas of law. One notable exception was criminal law, where legal aid cuts have seen solicitors’ income fall for the fourth successive year.
Vibrant contributor to UK economy
The report also highighted that the legal sector ‘is an active and vibrant contributor to the UK economy’. The reported stated that in 2015 it contributed £25.7 billion to the UK economy, £3.6 billion in net exports, with overall growth of 8 per cent.
Great health check
Robert Bourns, the president of the Law Society, said: ‘This survey is a great annual health check for mid-sized practices. The report indicates that, overall, participating firms are achieving a 10 per cent net profit margin.’
Good management key to future success
He added: ‘Our ‘Future of legal services’ report identifies the key drivers for change in the sector, together with the opportunities and potential challenges. Having good management helps firms financially, which will be important for them to remain sustainable in the face of increased competition.’
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