Stephenson Harwood has posted an 18% drop in profits per equity partner (PEP) for the last financial year, alongside a 3% increase in turnover.

The City firm saw PEP fall to £500,000 in 2011-12 down from £610,000 the previous year, with the decline coming as revenues rose to £110.2m from £107m, taking revenue growth to 30% over the last four years.

The drop in PEP was attributed to a 19% increase in Stephenson Harwood's equity partnership to a total of 63, with the firm making five lateral hires over the 12-month period as well as seven internal promotions.

Stephenson Harwood chief executive Sharon White said: "There is a drop in PEP, but this is down to our increased investment in the firm's equity partnership, as we do not believe in holding back partners who merit promotion. PEP is important but we don't let it drive our business. Our main focus is to keep growing our income, and striking a balance between the short term and investment for the future.

"We are very pleased with the growth we've achieved in these challenging economic times, as seen in our increase in revenue and the way we have strengthened our firm with new partners. Over the coming year we will continue to build on what we have achieved."

White cited the firm's Hong Kong, China and Paris practices as standout regions, while the firm's contentious disputes practices also performed well. Deal highlights include a role Lion Air advising Indonesia's largest private airline on a $21.7bn (£13.9bn) aeroplane order from Boeing last December.

The results come as Stephenson Harwood prepares to launch in Dubai later this year, while an office in Beijing is also in the pipeline.