The profit margin gap between the UK’s top five law firms and their competitors has almost doubled, raising concerns over the latter’s ability to retain and attract new business.

New figures released by consultancy Edward Drummond & Co revealed that the gap between the Magic Circle and Hogan Lovells and those firms ranked 21-100 had increased from 6 per cent to 11.5 per cent in the last five years.

The figures show that profitability reached 32.5 per cent and 21 per cent respectively in 2015/16, compared to 30 per cent and 24 per cent respectively in 2010/11.

The consultancy attributed the growing margin t...

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