Pannone has posted a 4.4% dip in turnover and a 9.5% drop in profits per equity partner (PEP) during 2010-11, in the wake of a firm-wide reorganisation carried out over the last year.

The Manchester firm saw revenues dip to £47.5m from around £49.5m the previous year, while average PEP slipped from £229,500 to £207,600. The firm attributed the decline to significant one-off costs associated with an overhaul carried out since Emma Holt (pictured) took over as managing partner last July.

The restructuring has included redundancies, a complete rebrand, overhauling the management structure, regrouping its fee earners into five divisions – injury and negligence, family, private client and wealth management, corporate services, dispute resolution and regulatory, and affinity solutions – and moving to a performance-based profit sharing model.

Taking the costs into account PEP ranged from £113,000 to £309,000 for the last financial year.

Holt said: "It has been a challenging year not only for Pannone but the legal profession as a whole. To rise to these challenges and meet clients' demands it was necessary to modernise the firm and take a number of difficult decisions including redundancies."

She added: "Our FY11 results were as anticipated and we are now in a position of considerable strength going forward and profits are predicted to increase significantly in the current financial year. Additionally, we have made a number of strategic partner appointments and are looking at further lateral hires."