The UK legal sector has grown more than 13 per cent over the last year, surpassing the wider professional services market.
The total revenues for the legal industry was £4.3bn in June, a significant increase compared to about £3.8bn for the same month last year.
The June figure represents the second highest monthly billings on record, this follows April’s figures of nearly £4.8bn, which was the most profitable of the past 13 months.
According to the latest ONS data, the overall professional services sector, which includes the legal industry, fell by 3.1 per cent to £234.7bn in June 2024.
Due to the time of the year, many of the City law firms have been posting their financial results for the 2023/24, with many posting double-digit revenues.
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, which chief executive Sir Nigel Knowles called “an excellent performance”.
City-based firm DAC Beachcroft’s turnover increased by nine per cent from the previous year, alongside a 15 per cent rise in profit before tax, totalling £71m, while its profit per member exceeded £700,000.
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.”