According to a report in the Solicitr?? .. The Law Firm Recession is over
It’s nice to be positive but we’re not sure we believe one PWC survey will drag firms out of the mire quite yet.
Solicitr reports:
Time to crack out the champers? Not quite? but a PwC survey reveals that law firms are over the worst of the downturn having slashed headcount and with work volumes increasing. On the ground it may not actually feel like it but the survey is reported to show that firms throughout the top 100 saw a rise in profit margins according to the Gazette . The magazine revealed that PwC?s quarterly benchmarking survey showed an 18% rise in profits per equity partner since January at the 10 largest firms, a 41% surge at the top 11 to 25 firms and that profit margins also saw a boost in firms of all sizes.
Compared to figures that followed the release of firms? 2008/09 annual results, which saw headcount remain steady, the survey now reveals a fall in the number of fee earners and support staff across firms of all sizes.
Things are getting better then. But no word on how this will affect trainee or lateral recruitment which looks set to remain tough for the time being.
http://www.solicitr.com/2009/09/28/law-firm-recession-over/
The Law Firm Gazette reports:
PwC?s quarterly benchmarking survey showed an 18% rise in profits per equity partner (PEP) since January at the 10 largest firms, and a 41% surge at the top 11 to 25 firms. Profit margins also saw a boost in firms of all sizes.
Commentators said firms were finally reaping the rewards of staff cuts and were seeing an increase in the volume of work.
In the three months to 31 July, equity partners at the top-10 firms earned average profits of ?181,000, up from ?154,000 in the first quarter to 31 January. PEP in the top 11 to 25 firms rose from ?56,000 in the first quarter, to ?79,000 in the July quarter.
Firms throughout the top 100 saw a rise in profit margins, which soared by 36% at the top-10 firms, and rose by almost a third at the top-25 firms.
The average number of fee-earners and support staff fell across firms of all sizes compared with the January quarter. Meanwhile, chargeable hours rose across all firms, with a 19% rise in the top-10 firms, indicating an increase in the volume of work.
http://www.lawgazette.co.uk/news/law-firms-039over-worst039-recession-pwc-report-reveals
