Cobbetts has declined to comment on its profit and mounting speculation that its margin has plummeted to unprecedented levels.
The firm reported a turnover figure of £59.4m for the 2007-08 financial year, while costs during the same period totalled £51m.
During the most recent 2008-09 financial year the firm’s turnover was down by 18 per cent to £48.5m, although unlike the previous year’s figure this has not been adjusted for work in progress.
Assuming that costs remained unchanged on the previous year’s, this turnover figure would result in the firm being £2.5m in the red.
It is unclear whether costs at Cobbetts increased or decreased between 2007-08 and 2008-09. However, the firm made 69 redundancies during 2008-09 and will have had to balance payroll savings against the cost of making redundancy payouts.
It should be noted that Cobbetts had set aside £2m in partner drawings from 2007-08, although it is unclear how or when this sum was used.
Managing partner Michael Shaw refused to confirm the profit figure, with an external spokesperson saying the refusal was “a business decision”.
“LLPs need to be careful because their accounts will be a matter of public record and partner earnings and other figures will be scrutinised,” said Addleshaw Goddard professional risks head Richard Linsell.