Consolidation, planning, investment and ‘cautious optimism’ proved dominant themes for the smaller regional and national firms in this year’s Legal Business 100 (LB100). The 31 non-City firms in the 51-100 bracket grew steadily amid a slow summer and dip in confidence during the 2016/17 financial year. Last year, however, the group’s collective revenue only managed a weak 1% rise to £1.27bn, with an average revenue of £41m. While real estate and construction continue to boom, deal flows are noticeably beginning to slow for many.
While regional firms are typically less productive per capita than London counterparts, that gap has widened. Revenue per lawyer was £181,000, down 8% and much lower than the £264,000 in London. Profits tell a similar story: profit per lawyer down 10% at £38,000, against £80,000 in the City.