Taylor Wessing's UK arm kept pace with the leading midmarket firms last year by posting an average PEP of £517,000, a rise of 28 per cent.

Globally, however, the firm's German operation continued to drag down the average. Although the performance of Taylor Wessing Germany has improved significantly over the past 12-18 months, the inclusion of its partners reduced PEP to just £393,000. Global revenue was up by 12 per cent, from £127.2m to £142.5m.

The firm continued to reap the benefit of an equity restructuring in 2005 that saw a dozen partners exit the equity. Globally, at the end of the 2005-06 financial year, 131 of the firm's 215 partners (61 per cent) were full equity, while in the UK the figure was 55 (55.5 per cent) of 99.

Taylor Wessing's merit-based remuneration system utilises common criteria for assessing partners in each of its three jurisdictions (the UK, Germany and France), but each has separate profit pools. This allows for differences in the operations of the three countries, such as work types and leverage.

In the UK it was the employment group that saw the most growth, up by 29 per cent, followed by corporate at 26 per cent. The finance, projects and private client groups also had a good year in the UK, with turnover up by around 20 per cent in each.

The firm is recognised as one of the most efficient in terms of financial management, but last year saw a slight slip in total lockup at year-end to 104 days (44 WIP and 60 debtor days). However, a total lockup of just over three months will still be the envy of most firms.

Taylor Wessing has ambitious plans for organic growth, this year promoting 19 associates to its partnership. Six came from the UK office and 11 from Germany, with two made up in France.

The firm has also expanded its partnership laterally, bringing in Olswang AIM star Howard Palmer in January.