Profit at City firm Trowers & Hamlins rose by almost 33% last year despite a small reduction in annual turnover.
In accounts filed with Companies House this week, the firm revealed profit before taxation of £24.2m in 2013/14, compared with £18.5m the year before.
This was despite turnover falling marginally from £77.8m to £77.2m during the year.
Members’ drawings were set ‘at a cautious level’ taking into consideration the working capital requirements of the business.
As a postscript, the accounts also note that after April 2014 the LLP received £1.8m in additional capital contributions from partners.
The profit increase was largely down to reducing operating expenses by more than £6m during the year.
Staff costs reduced by more than £1.5m as headcount was cut from 527 in 2013 to 506 in 2014.
But the estimated entitlement of the highest-paid member rose to more than £450,000 – up from £411,000 in 2013. The group’s bank overdraft was cut from £3.8m in 2013 to just £125,000 in 2014.
But debts to be paid back within one year rose slightly to £19.3m – largely because of increased debts through deferred income and to ‘other creditors’.
In the members’ report, the firm says net debt, relating primarily to loans and finance leases, ‘decreased significantly’ due to improved management of trade debtors and reduced cost of property leases.
The report says the firm expects continued demand in property, corporate, finance, construction and litigation sectors, although it adds that budgets have been ‘set cautiously reflecting the continued economic uncertainty’.