Hammonds saw its net debt more than triple to £15.1m during 2008-09, according to the national firm's first limited liability partnership (LLP) filings.

The UK top 30 firm's combined bank loans and overdrafts reached £21.2m for 2008-09, up from £8.8m the previous year. An increase in cash in hand at the bank from £3.9m in 2007-08 to £6m meant that overall net debt grew from £4.9m to £15.1m, according to the filings with Companies House.

Hammonds managing partner Peter Crossley told Legal Week that the firm had been reducing its borrowings every year since 2005 – when total loans and overdraft stood at £30m – and blamed last year's increase on the financial downturn.

The 2008-09 financial year saw audited revenues fall by 7.5% from £134.6m to £124.5m. The firm's UK operations saw turnover dip by 10.9% to £96.3m while operating profit dropped by 25.8% to £24.7m. In Asia, Hammonds reported a small loss despite an overall increase in turnover in the region, with the firm attributing this to the drop in corporate activity.

Other figures contained within the accounts include a 5.8% dip in members' capital to £25.8m, with the firm attributing this to a decrease in member numbers. The highest paid lawyer at the firm received £338,916 in 2008-09, representing a 33.8% drop on the previous year's figure of £512,039. When the firm reported its results for the last financial year, average profits per equity partner stood at £276,000.

Crossley commented: "Our borrowings come up for renewal on a rolling basis and we have revised and entered into new and innovative arrangements to get the best possible terms with our banks. There is no pretending that 2008-09 was not a challenging year. We will be concentrating this year on getting borrowings down, and 2009-2010 generally looks good so far."