LG has posted a 26% drop in profits per equity partner (PEP) for 2011-12, with revenue also fallng for a second consecutive year.

The firm, one of the last major UK practices to announce its results for 2011-12, has seen PEP dip by more than a quarter, from £412,000 last year to £303,000, with fee income falling 3.4% to £56m, down from £58m in 2010-11.

The revenue result comes after the firm last year dropped out of the UK top 50 rankings as turnover fell to £59m from £64.9m.

The decrease in PEP has seen the top equity payout fall 39% to £420,000, down from last year's top figure of £693,000, with the bottom of the equity falling from £206,000 to £150,000.

The decrease in PEP was attributed by the firm to high London property costs due to excess space.

LG senior partner Hugh Maule (pictured) said: "Our results reflect a slight drop in UK revenue but also illustrate the strength of our international client base – work originating from clients overseas has remained consistent and accounts again for approximately 40% of our turnover.

"We are maintaining our strategy of investing in our chosen jurisdictions, including in our newest office in Singapore. Whilst disappointing, the fall in PEP is principally due to increased property costs in London. These are now being addressed and we expect to conclude the letting of our surplus space shortly."

Revenue per lawyer has remained static at the firm at £301,000, with LG's property practice the largest contributor to revenue at £17.4m, followed by corporate at £14.2m and litigation at £12.7m.

Despite unsuccessful merger talks with Field Fisher Waterhouse, which ended last month, LG has confirmed that it is still looking for a merger "if appropriate for our business". The potential deal would have seen Field Fisher move out of its Vine Street office into LG's premises at More London Riverside.