National firm TLT says it was prepared for a short-term profit hit as part of longer-term investment in the business.
The firm reported this week that net profit in the 2024/25 year had fallen 12% to £24.6m, with profit per equity partner coming down from £655,000 to £601,000. This was on the back of revenue increasing by 7.5% to £187m – the highest figure ever recorded by the firm.
Managing partner John Wood said the profit figures reflect ‘significant investments’ made into people, infrastructure and technology.
‘These are deliberate, long-term decisions designed to ensure sustainable growth. We’ve continued to invest in attracting and retaining top talent, enhancing our digital capabilities, and expanding our market-leading EDI programme,’ he added. ‘While these investments naturally impact short-term profitability, they are essential to delivering long-term value for our clients and our people.’
During the year, TLT added 12 new partners and increased headcount to more than 1,800 people. Eight partners and 21 associates were added to the energy, infrastructure and planning practices.
The firm moved to new offices in Salford and doubled its footprint in Edinburgh by moving into a new base.
While other firms have rowed back on diversity policies, TLT has set a target for 50% female partnership by 2029 and introduced a neurodiversity support package.
Wood added: ‘We continue to grow and make significant investments to deliver a long-term growth strategy, whilst also staying true to our values, whether that’s leading the way in future energy, driving innovation through technology or playing a central part in building a more inclusive and sustainable legal sector.’
TLT has offices in Bristol, London, Manchester, Birmingham, Glasgow, Edinburgh and Belfast, as well as a specialist ship finance team in Piraeus, Greece. Its international network includes a strategic alliance with Dutch law firm Holla and Belgian law firm GSJ.
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