As global and domestic firms look to end the 2013/14 financial year on a high, we ask senior management figures for their anticipated performance and what their focus will be for the year ahead.
Taking stock
‘After extraordinary growth in 2013, we deliberately positioned 2014 as a year of consolidation. We’ll deliver strong turnover growth on the back of leveraging our investments in new talent and from increasing transactional activity in the market. With unemployment falling and inflation under control, the economic indicators are solid. While there were dips in construction and manufacturing output last year and there is concern about the increasing strength of the US dollar, overall confidence levels seem to be much stronger than they have been for some time, which is clearly good for business.’
Andrew Leaitherland, managing partner and chief executive, DWF
UK confidence justified
‘We are experiencing significant double-digit growth. The rising confidence in the UK economy is justified, but last year’s transactional activity demonstrates that deals lag overall macro-economic growth. Our sector focus kept us busy and growing. We do see more activity in the pipeline now. Our clients will expect us to deliver high-quality legal services innovatively and efficiently. The fact that they are enjoying greater economic success will not mean that they lower that requirement and we do not expect them to do so.’
David Stewart, chief executive, Olswang
Improving conditions
‘There are mixed messages emerging from economic data in the business marketplace, and likely uncertainty around the UK’s relationship with the EU and the general election in May 2015. However, we are cautiously optimistic about 2014 for two reasons. Firstly, we are already seeing strong activity in litigation, particularly with banking and financial services clients, and in real estate, with increased interest coming from overseas investors looking at London’s commercial property market. Secondly, the overall picture in the wider market is one of improving confidence and so with prospects of a global economy showing signs of strengthening, this will be good news for transactional activity.’
Sean Connolly, London senior partner, Mayer Brown
Opportunity knocks
‘We feel this year holds a lot of opportunity for the firm – we entered 2014 having achieved a good increase in our revenues in the first half of the financial year, and with our widest network of offices and associations to date. It’s very early in the year to judge any change [in fee or panel pressure from GCs] compared to last year, but I would say there is a general uplift in business – in line with the markets. Having said that, all firms will continue to see pressure regarding competitive rates – that has become the model for legal service provision.’
Sharon White, chief executive, Stephenson Harwood
Solid growth
‘We are expecting solid top-line growth this year. The energy sector has benefited from an increase in business confidence, resulting in greater investment. There will be more high-value complicated disputes and intellectual property continues to become a critical business issue. Venture capital will also increase as more companies look to invest in smaller innovative companies for their expertise and knowhow.
There is now greater access to capital, inflation is down, there is an increasing number of IPOs and government is showing commitment to shale. This bodes well for the UK economy in 2014, but there will be continued pressure on fees as firms battle to demonstrate the value they offer.’
Steven Wardlaw, partner in charge, London, Baker Botts
Settling down
‘If current favourable conditions continue, we would be very optimistic about the year ahead. We expect the finance practice to continue to perform very strongly. If the ECM window remains opens, we also expect to continue to benefit significantly from that. We anticipate moderate improvements in M&A, especially in certain sectors. We don’t anticipate major change in the economic fundamentals in Europe, but there are clearly still opportunities for profitable business.
We do not see Asia as a single economy. There are very clear opportunities for good profitable work with certain clients and locations. Our main priority is to continue to capitalise on all opportunities for us and our clients following our merger.’
Ben Tidswell, chairman, Ashurst
Keeping calm
‘All of the recent economic indicators are pointing in the same direction and it is good to see signs of an upturn. Nevertheless, we should not get carried away, as there is still some way to go before we see the UK market returning to previous levels.
There is mixed demand for legal services in Europe. Demand is strong in Germany and improving in much of northern Europe, and there are also signs of improvement in Spain. However, significant challenges remain in some countries, with structural changes yet to take place.’
Jeremy Hoyland, managing partner, Simmons & Simmons
Corner turned
‘It’s too early to say with any certainty where we will end up in revenue terms for 2013/14 but if the trajectory of the last few months is maintained we should be posting some solid results. Since Q4 2013 we’ve seen increased levels of client activity and enquiries as well as rising levels of activity across a number of areas. There is a sense of a corner being turned. With corporate and transactional workflow picking up and disputes still performing strongly, we’re generally much more optimistic about this calendar year than we were at the same point 12 months ago.’
Mark Rigotti, managing partner, industries and clients, Herbert Smith Freehills
Business confidence
As global and domestic firms look to end the 2013/14 financial year on a high, we ask senior management figures for their anticipated performance and what their focus will be for the year ahead
‘There is still some way to go before we see the UK market returning to previous levels.’
Jeremy Hoyland, Simmons & Simmons