The Lawyer Africa Elite 2014 features an in-depth look at 46 leading independent firms’ strategies in 15 key sub-Saharan jurisdictions, as well as the views of in-house counsel from some of Africa’s largest companies... Read more
This year, The Lawyer’s annual ranking of the largest UK law firms by turnover is available as an interactive, digital benchmarking tool. For the first time this will allow you to manipulate each data set against the metrics of your choice.
The magic circle is struggling to keep revenues growing at a faster pace than costs, The Lawyer’s report into a cross section of firms’ LLP accounts show.
Out of the four magic circle firms, Clifford Chance and Linklaters posted turnover hikes in excess of cost-base rises. At Clifford Chance, turnover was up nearly by 7 per cent in 2011/12, from £1.219bn to £1.303bn, while costs at the firm rose by 4 per cent, from £837.1m to £870.2m. Similarly, Linklaters’ turnover was up by 6 per cent in 2011/12, while costs rose by 4 per cent.
Turnover at Allen & Overy was £1.18bn in 2011/12, up nearly 6 per cent from £1.12bn in 2010/11. This went hand-in-hand with a 6 per cent rise in operating costs in 2011/12. Nonetheless, profit for the financial year available for division among partners was £344.7m, up from £298m.
Freshfields Bruckhaus Deringer saw the biggest discrepancy between turnover and costs. Revenue was effectively flat in 2011/12 at £1.14bn, but between 2010/11 and 2011/12 staff costs rose by 10.2 per cent, from £480.4m to £529.6m. As a result profit was down by nearly 5 per cent, from £366.6m to £349m.
For more on what the LLP accounts say about the magic circle and a wider cross-section of firms, see The Lawyer’s feature here.