Top-50 firm Trowers & Hamlins has blamed the costs of a new headquarters for a 36% fall in annual profits – but insisted the business is not at risk.
According to LLP accounts filed with Companies House, the group’s turnover fell by 3.6% in 2012/13 against the previous year – coming down from £81.2m to £78.2m.
Profit before tax tumbled by more than £10m, from £28.7m to £18.5m.
In a statement attached to the financial report, senior partner Jennie Gubbins said the cost of moving to new headquarters in Moorgate – together with the cost of running two offices concurrently – explained why profits had fallen so much.
She added: ‘Looking forward we anticipate continued demand in core areas of the business being property, corporate, finance, construction and litigation, although budgets have again been set cautiously reflecting the continued economic uncertainty.
‘The members do not believe that there are any material liquidity risks or uncertainties over the ability of the group to continue as a going concern.’
Earlier this year it was confirmed that profit per equity partner at the firm had dropped 14% from £358,000 to £307,000.
The LLP accounts confirmed the highest earner at the firm received £411,002 last year compared to £496,838 in 2011/12.
Cash reserves of £9.4m in 2011/12 fell to £1.8m last year, as the bank overdraft facility increased from £202,000 to almost £3.8m.
Trowers has domestic offices in London, Birmingham, Exeter and Manchester; and international bases in Abu Dhabi, Bahrain, Cairo, Dubai, Malaysia and Oman.
The number of fee-earners remained the same during the year at 256, while the firm increased its staff overall to 527.