The 2018 Smith & Williamson Irish Law Firm Survey shows that most Irish law firms anticipate a strong year ahead, with revenues and profits continuing to rise.

Revenue growth remains strong in the legal sector, with nearly seven in ten firms enjoying increased revenues, despite increased pressure on margins.

However, most firms (55 per cent) say they are more concerned about the impact of Brexit now than they were a year ago.

Around one third of the top 20 firms see Brexit as one of the biggest challenges to their firm over the next three years, with three in five firms believing it will pose a threat to revenues and profitability.

Around half of the top 20 have prepared a Brexit strategy; these are companies with an international client base and the threat is tangible. Among firms in general, with greater relative domestic exposure, concern drops significantly.

Paul Wyse, managing director for Smith & Williamson in Dublin, added: “There are other significant challenges: margins are under pressure and there is an increasingly competitive market for talent. In addition, the sector must contend with the entry of UK and international firms, plus issues around cybersecurity and disruptive technologies.

“Many firms are presenting a robust response to these challenges: The market for lateral hires is buoyant and investment in technology is helping improve working practices and client service. However, these responses are not evenly spread with smaller firms often under-investing. The outlook for the sector as a whole is positive, but some firms may find they are not able to participate as expected.”