Market monitor

National law firm Simpson Millar is set to make at least 20% of its workforce redundant as part of a restructuring that follows its listed parent company going into administration earlier this year. The firm said the changes were designed “to put in place a sustainable cost base following substantial under-investment under the ownership of Fairpoint Group PLC”.

Efficiency innovations implemented by in-house counsel at just five big companies – such as artificially intelligent (AI) contract review – have brought annual savings totalling more than half a million hours of lawyer time, according to new guide. Similar savings were being made by legal departments in thousands of other companies globally, it said, driving change in law firms that have traditionally relied on the work.

Slater & Gordon is set to avoid insolvency after nearly 70% of shareholders approved a recapitalisation plan which will see its senior lenders – led by American hedge fund Anchorage Capital – take control in a debt-for-equity deal.

A greater focus on specialist sectors is seen by senior managers as the biggest opportunity for law firms over the next two to three years, a survey has found. It comes at a time when firms believe that competitive pressures have increased but almost all are confident about the future.

The government yesterday damped down hopes that it would consider funding greater access to early legal advice. Support for a restore legal aid for early advice has been growing, with justice committee chairman Bob Neill MP and Supreme Court president Baroness Hale among those to talk up its benefits.

Before-the-event legal expenses insurance has “a considerable role in improving access to justice in the current legal landscape”, with the advice helplines that come with them of particular benefit, a major report has found.

Gateley, the UK’s first listed law firm, has announced strong first-half results, with revenue up 9.8% to £38.6m. A significant proportion of the growth (15%) came from the two non-legal businesses it bought last year, surveyors Hamer Associates and tax advisory business Capitus.

The Land Registry has unveiled plans to use artificial intelligence in conveyancing and also publish data on conveyancers’ performance. It comes as a Legal Futures report – published today – highlights how the use of data is set to change commercial conveyancing and the law firms which do it.

Law firms advising on cross-border commerce should be “cautiously positive that Brexit and the election of Donald Trump as US president will not damage future global trade or the legal work that flows from it, according to a report. It said the long-term trend in trade and its regulation is not protectionism but rather continuing globalisation.

A south-east commercial firm has signed a memorandum of understanding with an American firm of legal consultants to meet the needs of in-house counsel without “bulking up” its own business. Its managing partner said there was a “massive gap in the market” for client-centred law firms as general counsel became increasingly frustrated with their panels.

It will take around 18 months to completely separate Slater & Gordon’s Australian and UK operations, the law firm revealed this week as it told shareholders that failure to approve plans to recapitalise the business will leave it facing an “unsustainable” level of debt.

The strength of the UK’s regional legal centres has been highlighted in a report of the state of legal services by TheCityUK, which gave an overview of the sector outside the capital for the first time. The lobby group’s annual legal services report also highlighted London’s role as the leading centre globally for international arbitration.

Gordon Dadds expects to complete at least two acquisitions in the coming months, its chief executive said today on the back of strong financial figures, the first published results since the firm floated on AIM in August. Revenue increased 14.5% to £12.9m for the six months to 30 September, with operating profits up 44% to £3.5m.

Keystone Law made its debut on the London Stock Exchange yesterday and saw its share price jump 20% in the first day of trading. Meanwhile, the UK’s first listed law firm, Gateley, issued a strong trading update, with revenues up 10% over the first six months of the current financial year.

The last financial year has continued a return to profitability for many small and mid-sized firms, although cash is tight as lock-up has increased, according to an analysis of the accounts of more than 100 law firms of up to 30 partners.