The UK legal services market is highly fragmented. At the top of the pile sit the so-called magic and silver circle firms, operating internationally and charging the fattest fees. Below this elite echelon, there exist various regional and high-street practices. And, in recent years, the sector has become even more fractured – and competitive – because of the participation of rivals from overseas and from other industries: all ‘Big Four’ auditors have applied for law licences.
IC TIP:
Buy
at
168p
Tip style
Value
Risk rating
High
Timescale
Long Term
Bull points
Benefiting from the changing structure of the UK legal market
Strong organic growth
Diversifying revenues through acquisitions
Significant addressable market
Bear points
Reliance on case settlement for cash generation
Listed legal market is increasingly competitive