Solicitors’ profits ‘continue to rise’
RESEARCH by the Law Society suggests law firms increased profits last year but have less capital.
The society’s Law Management Section’s (LMS) annual financial benchmarking survey, sponsored by Lloyds Bank Commercial Banking, found that fee income increased by an average 4.1% in 2013, and that the average profit per equity partner rose by 3.6% to £121,731.
But it said there had been a fall in equity partner capital with some firms overdrawing profits.
Roger Hill, senior business development manager at Lloyds Bank Commercial Banking in the North West, said: “This year’s survey shows some positive trends, including growth in fee income and profits. It was pleasing to see some firms improving their working capital management, too.
“We are beginning to see some positive indicators that bode well for the economy in 2014, and solicitors are likely to get busier with a revival in house move transactions and rising levels of confidence among their business clients. However, solicitors in the North West will need to maintain financial discipline for sustained success.”
Nick Fluck, president of the Law Society, said: “It’s encouraging that law firms’ profits continue to modestly rise, but there’s no one-size-fits-all approach that will help firms to adapt to the tough conditions facing the sector today.”
