UK firms just outside the top 25 see biggest income growth in 3rd quarter
Fee income is growing in the UK, with the firms ranked 26-50 seeing the biggest income growth, at around 10 per cent.
The figures come from a quarterly survey by Deloitte, which covers the third quarter of 2011/12. The survey also indicates that the top 100 firms grew by an average of 6.5 per cent in the first nine months of this financial year, a figure that is predicted to remain steady in the fourth quarter.
The report explains that the underlying market growth may not be as grand as the figures suggest, with much of the increase attributable to a rise in merger activity during the year. Other drivers of growth include an increase in fee-earner headcount and an average rise of between 2.8 per cent and 5.2 per cent in chargeable hours per fee earner.
Jeremy Black, partner in Deloitte’s professional services group, said: ‘The overall sector has performed well in what have been very challenging markets. On average it is anticipated that the top 100 firms will grow by 6-7% for the year ended 30 April 2012.
‘However, the overall averages hide a wide disparity between firms, with performance increasingly dependent on firms’ practice areas and geographic footprints. Litigation continues to perform well, whilst corporate revenues remain lacklustre. Furthermore, those with a presence overseas, particularly in Asia, are able to bolster their performance in light of a more stagnant domestic market.’
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