Legal benchmarking report 2018

This year’s Natwest Legal Benchmarking report is the sixth annual survey of mid-size firms in the legal sector, consolidating the financial performance of 190 legal firms that collectively employ 11,100 people.

Scottish legal firms in the report represent 30% of the firms surveyed.

Read the report, via Natwest-Legal-Benchmarking-Report-2018.

The highlights from the report are:

– Average fees per equity partner are up 5%

– “Profit is more important than growth and there are too many firms that make the mistake of thinking that if they grow they are bound to become more profitable.” In fact, profit per equity partner (PEP) is down 10% for the year

– Median chargeable hours per fee earner were 1,000 per year in Scotland (1,104 for the upper quartile)

– Scottish firms outperformed the UK average lock up days with a median of 87 days, compared to a UK median of 101 days

– Law firms remain cautious about carrying debt and the median UK bank balance was £75,000. For the same metric, the median for Scottish firms was £108,000

So, the 2018 Natwest benchmarking report shows a mixed scorecard for the profession.

Scottish firms are, on average, outperforming the rest of the UK.

The report highlights the importance of cashflow and profitability management in what are challenging times for the legal profession.

EQ can help you understand the performance of your firm. To find out more, please contact one of the Professions team at professions@eqaccountants.co.uk or speak with your local office contact.