North of England law firms suffer stagnating profits

The profits of small law firms in the far north of England are stagnating because of rising costs, according to data from their accountants.Dodds & Co - with offices in Carlisle, Penrith and Lancaster - has produced a profits report from its nine law firm clients, mainly small firms but including one 14-partner practice.Fees per partner rose by an average of 25% to 244,274 last year, but average costs per partner rose 43% (51,389), causing a 2.5% fall in profits per partner to 73,164.The fastest increasing expenses were wages, the cost of which rose on average per partner from 67,714 in 1999, to 98,395 in 2000.

Administration costs also rose on average by 40% per partner.In 1999, average net profits per partner had risen steeply to 75,188, from 49,225 in 1998.Jeremy Fleming