President's Foreword
Having an overview of the financial health of law firms in Scotland offered by our Financial Benchmarking Report provides insight into how some of our members’ businesses are operating in an increasingly competitive marketplace.
The legal sector has gone through significant changes in recent years and we know that while some firms have reported an upturn, conditions have remained challenging for others. The 2019 report has shown a drop in the total income per partner figure, although profitability per partner remains in line with the previous year and is substantially higher than the 2016 Financial Benchmarking Survey. This indicates that firms are taking effective measures to address challenges and manage their costs.
The report is designed to help Scottish solicitors assess their firm’s performance year on year and how they compare against competitors and the legal market in Scotland more widely. It can also provide useful insight for the Society into the kinds of services and support solicitors may need to help boost their business performance.
I would like to thank our members who participated this year. Firms which contributed to this year’s survey will benefit from the detailed information contained in their individual interactive, online report.
I hope you find the report interesting, informative and a useful part of your management toolkit as you plan for the future.
John Mulholland
President
Law Society of Scotland
Financial Benchmarking Survey – 2019 Report
Welcome to the report for the financial benchmarking survey 2019. The report shows a wide range of useful metrics on income, expenditure and profit, and allows solicitors to analyse trends for their firm, their competitors and across the wider sector year on year.
Click here for the President's foreword
"Clydesdale Bank is delighted to once again be associated with the Society's Financial Benchmarking Survey. The insights gained by our Professional Services Team from the Scottish legal profession are reflected in the results of this year’s survey. With income per partner lower than the previous year across all regions, this suggests costs continue to be well controlled, as median Profit per Partner remained in line with previous year. However the day-to-day challenges of generating new and profitable fee income, managing working capital and succession planning remain priorities.
The Financial Benchmarking Survey findings will help firms gain a greater understanding of the legal market and assess where they sit in comparison to their peers. The data in the overall report is useful in helping solicitors develop their strategic thinking and future planning, allowing them to assess what is working well and what may need to change within their business to boost performance.
Our team of trained specialists have a proven track record of helping to deliver strong and sustainable financial performance coupled with a deep knowledge of the dynamics driving this industry. We work closely with solicitors to create bespoke funding solutions and add value through our relationship-based approach."
Sue Carter MBA. UK Head of Professional Services Sector, Clydesdale Bank.To register your firm’s interest in participating in next year’s survey, please enter your email address below.
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See your firm's result for various measures against the benchmark
Profit Margin
Your Result
36.2%
compared with Sole Principal median: 35.8%