SJ Berwin continued its impressive form in 2005-06, reporting a 24 per cent increase in PEP to bump the figure above the £700,000 mark for the first time.

Revenue was also up, by 27 per cent, as the integration of the German arm in 2004-05 continued to bear fruit.

In fact, the European offices proved to be the most profitable, despite it being London's best year ever. Italy was the obvious exception following December 2005 launches. European overheads are kept low by ensuring that a quarter of staff, compared with a third of the partnership, are based overseas.

Accounting revisions to accommodate FRS5 and WIP assisted the improved results last year, but negotiation of an early lease exit worth £3m on its former London premises at Gray's Inn Road was also a significant contributor.

Corporate and private equity remain SJ Berwin's biggest revenue generators; the firm retains its position as one of the leaders in the City for private equity funds formation. Its relationship with TDR Capital was firmed up following former partner Blair Thompson's appointment as its COO in May. Other key clients include Barclays, British Land, Diageo and Ladbrokes.

But 2005-06, which included a move to new London premises at Queen Street Place, was a year of transition for SJ Berwin. Corporate partner Jonathan Blake was also confirmed as the firm's new senior partner, replacing David Harrell, who was 13 years in the role.

At the same time, the silver circle firm wrapped up a strategy review in January, implementing a swathe of initiatives. As a result, nine working groups are examining issues as diverse as developing a formal global secondment programme with international firms to expansion possibilities into China, India and Russia.

SJ Berwin operates a nine-band modified lockstep remuneration system, with 20 points at the bottom and 60 at the top. Profit is divided into two pools, with 30 per cent being divided by points and the remaining 70 based on performance.