Halliwells continued its rapid growth this year with a turnover increase of 25 per cent, to £62.7m, and an average PEP rise of 24 per cent. The latter increase takes PEP to £508,000, an increase of 144 per cent over five years, while turnover has doubled during the same period.

Halliwells' growth comes after an aggressive lateral hiring spree that has recently included two mergers, the first in the firm's history. The 2006 figures include Halliwells' new Liverpool office, taken on when it merged with property specialist Cuff Roberts in January 2005. Next year will also include the insurance team of James Chapman & Co, which joined Halliwells at the start of the current financial year.

Despite the growth, Halliwells has maintained a tight hold on its equity. Only one equity partner was added during the past year, while the total partnership grew from 103 in 2005 to 125 this year. That means that the equity is now just 32 per cent, compared with 38 per cent the year before, making it easier to boost profit.

Equity partners are remunerated primarily on merit, although new equity partners join a four-year lockstep before they are paid purely on performance. The firm's equity spread is wide, ranging from £190,000 to £600,000.

Litigation and property are Halliwells' major practice areas, accounting for 30 and 28 per cent of turnover respectively. The firm is not afraid to make its fee-earners work to bring in the revenue, with chargeable hours targets on the high side at 1,550 for assistants and 1,300 for partners.

Halliwells managing partner Ian Austin and senior partner Alec Craig were re-elected unopposed during the summer for second four-year terms. Austin immediately vowed to drive the firm forward. Austin is aiming for a much bigger London presence and £100m in turnover. With the James Chapman partners adding £10m to the top line, that target is not far off.