Natwest Legal Benchmarking Report 2020

Productivity issues are also highlighted as companies focus on managing the “increased workload” and hiring more employees. This translates into a 23% reduction in net profit, the lowest in the report`s history. With average revenue growth of 5% in 2016, the business climate for small and medium-sized enterprises (SMEs) with revenues below £123 million in the UK has generally been positive, according to the latest NatWest Legal Benchmarking report, published today (30 March). Our 2020 Legal Benchmarking Report shows that the industry is investing in its future skills needs, compensation potential and retention of key talent to build resilience while further increasing revenues and improving financial controls. Steve Arundale, Head of Commercial Business at NatWest, commented: “The legal industry faces many challenges, from the rise in cybercrime to the growing difficulties of block management. However, earnings per associate (PEP) continue to improve year-on-year and performance in 2016 is 33% higher than in 2013. Fees also increased by 5%, which remains well above inflation. I hope this legal benchmarking report will provide valuable insights to compare the financial performance of local and national peers. The report also includes research on fees, profits, finances and more, highlighting the best ways to increase profitability. Download here: The report also notes that litigation and debt financing will remain “relatively dynamic”, while the rapidly changing regulatory landscape is generating high-end advisory mandates for key players. (1) All Sustainalytics information and data contained herein is the property of Sustainalytics and/or its third party suppliers (third party data) and is provided for informational purposes only. It does not constitute an endorsement of any product, project or investment advice and is not guaranteed to be complete, timely, accurate or fit for any particular purpose.

Their use is subject to the conditions available on www.sustainalytics.com/legal-disclaimers. As ESG becomes increasingly important in the legal industry, we asked a series of questions on this topic for the first time this year. Our survey showed that “moral duty” was the most important driver of ESG activities, followed by client pressure, value protection, value creation, recruitment and retention. The report, which surveyed 269 companies, said companies should try to reduce their lockdown, which at an average of 113 days is now longer than at any time in the past five years and four days longer than last year. Research suggests that without a steady stream of new business and fees paid, businesses would run out of money within 40 days on average. Ahead of the 2020 Legal Business Awards, NatWest`s James Tsolakis reports on developments for the profession over the past year James Tsolakis, Head of Legal at NatWest and author of the report, commented on the findings: “If there`s one thing lawyers don`t like above all else, it`s uncertainty. However, if you look at the current market and how businesses are responding to this ongoing uncertainty and the activation of Article 50, it`s likely to be quite a contentious and contentious period as law firm clients reposition themselves and try to define their business interests. « Strategy Fundamentals – Mission and Vision Statements youtu.be/4akqzN8Dzo0 8 minutes (August 2020) Marketing audits – onion analysis and PESTLE youtu.be/-TtgW1i-7gA 6 minutes (August 2020) KAM Basics – Customer portfolio management with dinosaurs youtu.be/ORlnsuXGLaI 4 minutes (October 2020) Sales Basics – Targeting with rabbits, deer and elephants youtu.be/_tLmv3hU7M4 7 minutes (August 2020) Why do you need a Business plan? 10 reasons why| Kim Tasso (August 2020) Global law firms headquartered in the UK have delivered strong financial results with revenue and fee profit growth for the top 10 firms surveyed. These financial results are partly due to largely stable billable hours and an increase in rates of 8.1% in offices in the UK and 9.1% internationally. We are also seeing strong results in the top 11-25 with expense revenue and earnings growth of 73%.

This report provides an overview of legal practice in the UK and focuses on some of the relevant issues and trends in terms of revenue, profitability, personnel costs and lock-in. You can use this analysis to compare your own company`s performance and identify areas where you can improve efficiency, as well as key actions you need to take. The report notes the gap between firm size and PEP – the bigger, the better it is for profitability. The report also shows that closed doors have been identified as a problem for law firms. With 113 days, this is now 4 days longer than last year and longer than at any time in the last 5 years. Traditionally, as businesses grow, they find it increasingly difficult to manage the blockage. The results are consistent, with a median of 84 days for small businesses, 131 days for large businesses and 142 days for very large businesses. Without a steady stream of new business launches and fees paid, the results show that, on average, businesses would run out of money within 40 days. If you would like to discuss ways to compare your business or think about your own strategic goals for the future, please contact Kate Arnott, Professional Services Manager, directly or send us an online request. As the 2020 Legal Business Awards submission deadline approaches, there is a lot to think about and celebrate in the UK legal sector.

NatWest is once again pleased to be the presenting sponsor of the awards and recognize the success of the legal industry as it continues to support important global transactions and reshape the commercial world at home and abroad. We earned a B grade in the 2021 CDP Climate Change Survey, achieving B`s average financial services average. While our rating for 2021 was downgraded compared to 2020, we continued to integrate climate considerations into the core of our business, improved the depth and transparency of our climate information, and supported the transition to a net-zero economy. Watch for fieldwork for the June 2022 report and our new quarterly pulse survey. The investigation is written and prepared by the legal team of Hazlewoods LLP and sponsored by Lloyds Bank. After not actively participating in the 2020 S&P CSA survey, we fully participated in the 2021 survey and scored 63/100, placing the NatWest group in the 80th percentile, compared to the 60th and 77th percentiles. percentile we reached in 2020 (based on S&P`s review of our publicly available information) and 2019 (where 100th is best). The report suggests that as businesses grow, the shutdown becomes increasingly difficult to manage, with an average duration of 84 days for small businesses (revenues below £2.25 million), 131 days for large companies (£2.25 million to £10 million) and 142 days for very large companies (£10 million and over). Cyber threats remain a central concern across the legal industry, with 78% of the top 100 reporting it as an extreme or partial concern.