Insurance litigation firm BLM has blamed a year of investment in the practice for a steep fall in partner profits.
Profit per equity partner (full and fixed equity) dipped to £192,000 in 2015/16 from £265,000 the previous year, while income rose from £104.1m to £107.7m.
Net profit fell to £14.8m from £18.3m.
BLM was formed from the merger of top-50 firm Berrymans Lace Mawer with Scottish firm HBM Sayers in 2014.
Mike Brown, senior partner (pictured right with David Taylor, chair of the HBM Sayers management board), said: 'Our financial results reflect a year of investment at BLM and the steps we are taking to act upon the outcome of our very positive customer insight exercise.
'We know that the growth of our business and its strength in the future will be the result of the investment we make now; investment in technology, in the right people and in the right locations, and with the right skills are crucial.’
Brown said the 2014 tieups with both HBM and Irish outfit Campbell Fitzpatrick are fully embedded, and the firm is already seeing the results. He added: 'Next, we need to offer the market a flexible service in their global territories and therefore our time and investment in creating a global network is in hand.
'It is with continued investment that we are able to adapt and reshape our business model to align ourselves to the risk and insurance world. Our financial results this year demonstrate our investment in continually building a sustainable and effective business model for the law business of the future.’