Richards Butler has posted an 8% drop in profits for the last financial year, against a 7% rise in turnover.

The firm's average profits per partner now stand at £370,000, with turnover up to £92.5m.

Dispute resolution was the main contributor to the firm's bottom line this year, with revenue growing by 20%.

The firm is positioning itself as a leader for major international disputes, claiming that it does not have the conflict issues of the large transaction-based firms, notably in terms of acting against financial institutions.

Corporate saw a negligible rise in turnover, while finance saw revenues rise by 8%. The firm recently retained its place on the panel of key banking client Barclays.

Richards Butler's strategy is to target mid-tier businesses, both domestically and abroad, for corporate and finance work.

Managing partner Roger Parker said: "We are playing to our strengths and one of those at the moment is dispute resolution.

"We are not trying to corner every market and each practice area is focused on select areas of business."

Parker said the firm was not in merger talks currently, but would treat approaches from US firms on a case-by-case basis. "We are a tight and lean firm with good profitability and the make-up of our business makes us a strong target for a US law firm," he added.

The firm's profitable Hong Kong arm has not been included in the figures as it is structured as a separate profit centre.