Contact: James Igoe
Deloitte
Public Relations
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The UK’s Top 100 law firms have kicked off the new financial year in style.  Figures from Deloitte’s Quarterly Legal Sector Survey (QLSS) show that UK law firms’ fee income grew by 15% for the three months ended 31 July 2007 compared with the same period last year.  The news is even more impressive at the top end of the sector – with firms in the top 25 achieving average growth rates in excess of 20%.

This is the first quarter in which QLSS has been conducted.  Deloitte invited the Top 100 UK firms to take part with the majority of firms responding.  QLSS is intended to act as a barometer of industry activity.

Jeremy Black, associate partner in Deloitte’s Professional Practices group said: “Last year was a good year for the legal industry in terms of revenue and profitability.  UK lawyers have clearly been very busy well into the summer and if it carries on, this year could be record-breaking.  The increasing numbers of businesses from the emerging economies choosing London as the market in which to do business provides an advantage to the leading UK players.  This is further evidence of the continuing trend for London demonstrating it’s pre-eminence in legal services for the world’s major businesses.”

“On average, fees per fee earner are up by 7.6% across the Top 100 firms, but amongst the top 25 firms figures are almost double that at close to 15%.”

“UK law firms have continued to benefit from the ongoing levels of corporate activity.  While the unsettled conditions in the credit markets have caused concern over the level of corporate activity and the outlook for the economy going forward, the legal sector remains optimistic.”

The survey shows that on average, law firms expect to record annual fee income growth of 13%.

Black added:  “The firms at the upper end of the industry expect to grow more quickly.  Our results show an expected 15% growth rate at the very top of the sector but the fact that all segments of the market expect double-digit growth is evidence of the health of the legal profession.”

 “The QLSS provides, for the first time, regular up to date information on the performance of a significant segment of the legal sector.  The results of the first quarter survey show no signs of any slow down in the level of activity in the legal sector.”

Ends

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.