Legal sector growth overtakes wider professional services market
The UK legal sector has grown more than 13 per cent over the last year, surpassing the wider professional services market.
The legal industry’s total revenue was £4.3bn in June, a significant increase from the £3.8bn for the same month last year.
The June figure represented the second-highest monthly billings on record. This followed April’s figure of nearly £4.8bn, the most profitable of the past 13 months.
According to the latest ONS data, the professional services sector’s overall value, including the legal industry, fell by 3.1 per cent to £234.7bn in June 2024.
Over the past couple of months, some of the City’s top law firms have published their results for the last year, and many have posted double-digit revenue growth.
Law firm Irwin Mitchell saw revenue surpass £300m for the first time as it rose by 10 per cent to £304.3m for the year ending 30 April 2024, up from £276.4m. Meanwhile, profit before tax was £21.7m, up 45 per cent on the prior year of £15m.
DWF’s net revenue increased from £380m to £435m for the year ending 30 April 2024, a performance chief executive Sir Nigel Knowles called “an excellent”.
City-based firm DAC Beachcroft’s turnover increased by nine per cent from the previous year, alongside a 15 per cent jump in profit before tax to £71m.
Julie Norris, legal services regulatory partner at Kingsley Napley, commented: “The UK’s legal industry appears set for a record breaking year after two strong quarters of results.
“Nonetheless, with the pace of change in technology increasing and ongoing consolidation in the market, including investment from global consulting firms, firm-wide leaders should not be resting on their laurels.”