The boost to the firm’s working capital requirement was made in November 2008 and came after it posted a flat revenue at the half-year level.
Senior partner Simon Johnston explained: “We were looking at the business and cashflow projections – turnover was dropping and profit was dropping. We were undercapitalised by other standards.”
This happened during a year in which the top 25 firm’s staff costs increased by around 4 per cent on a year-on-year basis, according to LLP accounts filed with Companies House.
The firm spent £53.1m on staff in 2008-09 compared with £51.1m during the previous financial year. The growth came as a result of increased salary costs, recruitment fees and
redundancy compensation for 22 staff.