Global 100 revenues rise 16% to hit $40 billion through quantity not quality

TOP FIRMS: Clifford Chance still top of tree but most City practices slide down world rankings

Revenues at the world's 100 largest law firms rose 16% to $40 billion (26 billion) in the last financial year, research has found, although City firms are being overtaken in the rankings.

However, the survey by American Lawyer magazine said this growth was mainly because the top firms had more lawyers rather than greater productivity.

Revenue per lawyer rose just 1%, while profits per equity partner actually dipped 1.6%.

The survey placed Clifford Chance at the top for the second year running, with turnover in 2001/2 unchanged at $1.4 billion.

Top New York firm Skadden Arps Slate Meagher & Flom remained second, with its income up a little to $1.2 billion.

Freshfields Bruckhaus Deringer moved up a place to third (a 13% rise to $1.1 billion), overtaking Baker & McKenzie (up 6% to $1 billion).

Linklaters and Allen & Overy stayed steady at fifth and sixth with revenues of $917 million (up 22%), and $834 million (up 13%).

There are 15 City firms in the list, two from Canada - McCarthy Ttrault (88th) and Gowling LeFleur Henderson (97th) - and Mallesons Stephens Jaques from Australia (92nd).

The rest are from the US.

With the exception of Ashurst Morris Crisp - which rose from 72nd to 70th with revenues up 14% to $265 million - all the other City firms dropped down the table, most notably: Slaughter and May (34th to 45th with slightly declining income of $355 million); Herbert Smith (48th to 57th with income up 3% to $322 million); Denton Wilde Sapte (66th to 79th with revenues up 1% at $246 million); and Simmons & Simmons (76th to 86th with revenues up 1% to $225 million).

Hammond Suddards Edge is a newcomer to the table, its $194 million income sneaking it in at 99th.

The other City firms listed are: Lovells (26th), Eversheds (43rd), DLA (59th), Norton Rose (65th), and CMS Cameron McKenna (75th).

The survey said that expansion continues at firms, 'albeit a bit more cautiously than before', with a focus on finding profitable niches in other countries rather than trying to be 'all things to all clients'.

The survey reported: 'It's a predictable development for all global firms.

Now that they've planted their flags, they'd like some positive returns.'