- Growth in revenue
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It has been another competitive year in the City with the proportion of firms reporting a fall in revenue this year rising to 17%, up from the 10% we reported last year and 8% in 2017.
83% of firms reported growth this year, a reduction of 7% from last year.
However, many firms grew both revenue and profit and a 5.4% increase in headcount shows a confidence with firms continuing to invest in building their teams.
Participants also have clear plans to increase their level of agile, remote and virtual working over the next 18 months and the loss of key people was reported as the primary business critical risk.
We didn’t expect a spectacular year for regional firms given the current climate but many firms will be pleased with this year’s results, particularly equity partners who enjoyed growth in PEP. The increase in revenue was steady at 6% across all regional participants, but the proportion of firms who grew their top lines is back up to 78% – reversing a long-running trend. This year, only one in five firms reported a fall in revenue down from our 2018 benchmarking results, where 30% of participants reported a shrinking top line.
Nearly half of our participating firms enjoyed growth in PEP of more than 10%, which is especially good news in a period when the wider economic mood might have suggested a different story.
Our Professional Practices team