Listed company share prices
UK listed law firm share prices have lagged significantly behind the wider UK equity market.
Overview
- Average share prices in the UK legal sector decreased 35.9% over the 24 months to 30 June 2023, in comparison to the FTSE AIM All-Share Index which decreased by 14.3% over the same period.
- Whilst activity in the legal sector has improved post-Covid, adverse broader economic conditions have impacted the average share price of UK legal firms. The sector has faced subdued demand for corporate legal services due to the adverse impact of both continuing high levels of inflation and a weak global economic outlook. Economic conditions have also dampened demand for M&A related legal services.
- The general pattern of movement in legal firm share prices broadly matches that of the FTSE AIM All-Share Index across the year to 30 June 2023. However, the adverse movements are significantly more pronounced in the share prices of the legal firms in comparison to the wider market.
- As noted on the next page, a number of the UK listed law firms have missed revenue and profit targets over the period, which led to adverse shocks to average share prices in the sector.
Source: CapitalIQ, MarketIQ, IBIS World
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