Trowers & Hamlins saw total profits fall by a third in the last financial year as its UK and Middle East practices were buffeted by economic and political uncertainty.

The information, available in the firm's 2010-11 limited liability partnership accounts recently filed on Companies House, shows to what extent the top 50 UK firm was affected by market conditions during its last financial year.

The accounts show that total profits available for distribution among members fell by 33.3% from £28.7m to £19.2m. Meanwhile, net cash flow reduced by 24.2% from £33.7m at the end of the 2009-10 financial year to £25.5m.

Audited turnover for the firm feel by 13% from £90.4m to £78.5m. This came as the firm had previously reported a 20.3% fall in profits per equity partner (PEP) for the financial year to £441,000.

The firm also said that despite careful cost control, operating profit margins fell from 34.9% to 27.9%. The firm's total cash reserves also fell by £4.1m over the year but Trowers said despite this its cash balances continued to exceed borrowings. Trowers senior partner Jonathan Adlington said the firm maintained a positive cash fund of £2.5m.

Having gone through redundancy procedures with fee earners and staff on the back of a drop-off in activity due to public sector spending cuts, the firm saved 4.6% on the previous year's staff costs, as these were reduced by £1.8m from £39.3m to £37.5m.

Total staff numbers were reduced by 25 during the year, a fall of 4.5%. Out of this, just over half (13) were fee earners. Total partner numbers decreased by two, from 96 to 94, defined in the accounts as 'members, while the highest remunerated partner at the firm earned £448,506, compared to £592,603 in 2010.

Trowers has offices in London, Manchester, Birmingham, Exeter, Abu Dhabi, Bahrain, Cairo, Dubai, Oman and Riyadh.

In the members' report, Trowers states: "Looking forward we anticipate continued demand in core areas of business, being property, corporate, finance, construction and litigation, although budgets have been set cautiously reflecting the continued economic uncertainty."

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