Law firms: agility in a crisis

The pandemic presented law firms with their greatest challenge in a generation. Our analysis of the latest set of filed accounts for the top 50 UK law firms, which covered almost exactly the first 12 months of the pandemic, compiled with Law.com International, suggests that law firms acted swiftly and effectively to protect their businesses, working with clients and staff to manage their way through the crisis.

This is shown in higher cash reserves, improved debtor days and also lower levels of costs. Despite the predictions at the beginning of the pandemic perhaps the most surprising aspect is that figures confirm that fee income actually grew during this period.

However, having survived the pandemic is there a risk of complacency across the sector as further challenges lie ahead, particularly as the economic climate worsens. Law firms may need to show similar agility to thrive in today’s climate.