Beachcroft came tantalisingly close to breaking the £100m turnover mark last year, falling just £2m short. PEP was up to £270,000, with a number of lateral hires having a knock-on effect on the bottom line.

The target for 2007 is £300,000 and managing partner Paul Murray is aiming to cut costs and decrease lockup to achieve that aim.

Beachcroft is ditching its modified lockstep and moving towards a performance-based system. Under the old system, which was still in place during the last financial year, equity partners entered the equity on 50 points and progressed by 10 points annually. There was also an element of merit-based remuneration.

Under the revised system equity partners will be paid a base salary. On top of that they will receive a return on the capital they have invested: London weighting (if appropriate); a share of the profit allocated on a lockstep basis; and a share of 10 per cent of the firm's total profit, to be allocated through merit. The new system kicks in at the end of the current financial year.

Beachcroft's revenue comes almost entirely from the UK, with its Brussels office barely contributing to the total. Litigation is the major practice area and lockup is affected by this, hitting 167 days across the firm.