Bevan Brittan has seen revenues slide 9 per cent from £37.7m to £34.3m as a result of mass public spending cuts.
The firm said its decision to focus on its public sector offering had been hit by the Government’s comprehensive spending review, making 2010-11 a “challenging year”.
Net profit at the firm contracted by 4.6 per cent from £8.6m in 2009-10 to £8.2m. The firm’s profit margin, however, nudged up to 24 per cent from 23 per cent last year. This is a marked incease on the 14 per cent margin the firm posted for 2006-07.
Average profit per equity partner (PEP) reached a five-year high at £303,000, up 5.2 per cent from £288,000.
Bevan Brittan said a bonus pool would be established for employees following the completion of an internal audit.
Chief executive Andrew Manning said in a statement: “As the leading public services law firm, 2010-11 has been challenging for us, with the change in Government and the steps to reduce the budget deficit through the Comprehensive Spending Review – leading to a series of policy changes and – or delays in decision making that impacted core areas of work, the changes to the Building Schools for the Future programme being a prime example.
“This, coupled with tough economic conditions in general, and the run-off of our decision in preceding years to exit some markets and services to focus on the public services arena, where we’re market leaders, meant that our revenues for 2010-11 fell by 9 per cent to just under £35m.”
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