The UK’s Top 100 law firms have achieved double digit fee income growth in the quarter ended 31 January 2008, although the rate has slowed from the levels achieved in the previous two quarters, according to the latest figures from business advisory firm Deloitte. 

Deloitte’s Quarterly Legal Sector Survey found that fee income growth in Q3 was 10.6% compared with growth rates of 12.5% and 15.1% in Q2 and Q1 respectively.  However, average chargeable hours per fee earner have fallen across all firms within the sector, indicating firms do have capacity to take on more work.

Jeremy Black, associate partner in Deloitte’s Professional Practices group said: “The results of our survey show that, in broad terms, City lawyers continue to be relatively busy which is extremely positive in the face of some gloomy predictions.

Black added: “Our survey has, once again, highlighted that there is an increasing polarisation of the sector as the larger firms continue to outperform the smaller firms.”

On average, fees per fee earner are up by 3.7% across the Top 25 firms, but have only increased by 1.6% across other firms in the Top 100.

Based on the strong first 9 months performance there is general consensus amongst firms that double digit growth will be achieved for the annual results to 30 April 2008 across the sector as a whole.

The survey provides regular up to date information on the performance of a significant segment of 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.