Although Salans is an international firm, with some of its most significant offices outside the UK, it operates as a UK partnership and is examining the possibility of converting to a UK LLP.

The firm's 3 per cent turnover growth in the past year included investment in two major team hires, one from Haarmann Hemmelrath's Berlin office and a group from French independent Rambaud Martel. Both teams should push the firm to a larger turnover rise in 2007.

Average PEP was up 6 per cent globally to £376,000. London is a more profitable office than the firm as a whole, with a profit margin of 21 per cent compared with 21 per cent globally. The London office made £16.7m during the year, with a net profit of £3.8m.

Salans' functional currency is the US dollar, which had a negative impact on turnover and profit during the last year as it remained weak. Salans' New York office struggled most, losing several partners and failing to make an impact in the market.

The firm operates a modified lockstep, which takes into account both seniority and performance. Last year Salans increased the remuneration of the partners at the bottom of the equity by on average £50,000. This resulted in a drop at the top end and a narrowing of the spread. In 2004-05 the equity ran from £200,000 to £600,000, while last year it went from £250,000 to £575,000, despite the firm's overall profit increase.

Distribution was relatively quick, with final profit distributed to partners just four months after the end of the financial year.

Salans' revenue growth in the future could be hit by the loss of the firm's entire London-based media team leaving for Richards Butler in June this year.