Now that the bulk of firms have released their results, we’ve got a picture of stalled revenues and falling profits. The UK’s top law firms have suffered a dramatic fall in profitability and a shrinking market in what’s mooted as the worst trading conditions for the profession since the early 1990s.

In the Magic Circle, revenue growth was slightly above the average at around 3% and profits fell a little less than the average but, in aggregate, the top 50 firms have seen an overall real terms fall in revenue. Particularly hard hit have been firms with substantial exposure to property and private equity such as Ashurst and SJ Berwin with falls in PEP of more than 35%. National firms such as Wragge & Co and Shoosmiths have also suffered badly, Shoosmiths’ profits fell over 50%. As for redundancies, thay may not have affected the figures yet but we all know they are out there.

So a lot of bad news right now but we like to look for a glimmer of sunshine a rainy day so here goes – where lie the opportunities?

Although the glamourous end of the legal spectrum has had the wind taken out of its sails, other areas of the legal market at doing rather well. When we say legal we use the term loosely here. The particular area of the ‘legal’ market that is booming at the moment is ‘claims management’. According to the Gazette the Claims Management Regulator’s 2009 impact assessment shows that the number of businesses entering the claims management market has risen by 60% in the past year.

Although personal injury was by far the largest sector for claims-handlers, with 2,232 firms operating in this field, and a combined annual turnover of £287m, there has arisen a ‘major new market’ in claims relating to consumer credit contracts. Here claims firms act for consumers by claiming that credit agreements are deficient and not enforceable. Perhaps an entrepreneurial opportunity for those wondering what to do with that wasting legal experience – no need to go near a swine-flu infested hospital either…

Silver lining? Hmmm.