North West firm Hill Dickinson had a year of investment in 2005-06, particularly in Manchester. It has resulted in a 20 per cent top-line increase, but impacted on profitability. PEP is now hovering just below the £300,000 mark at £296,000, up by 12 per cent from the previous year.

Hill Dickinson has operated its 10-step modified lockstep for six years. Partners face a review at least every three years, which can suspend progress up the ladder. Managing partner Peter Jackson and four other senior equity partners form the review committee. There were 10 partners at the top of the lockstep and five at the bottom during the past year, with the remaining 28 spread out evenly.

The firm does have an overdraft facility, run in accordance with advice from its accountants Grant Thornton. Hill Dickinson's debt is split equally between the overdraft and partners' capital contributions. The firm failed to meet its 150-day lockup target this year, mainly due to lengthy debt collection, which reached 94 days. However, the 167 days achieved is a considerable improvement on the 212-day lockup in the previous financial year.