Addleshaw Goddard has posted a 2% drop in turnover for the 2012-13 financial year, alongside a 2% increase in profits per equity partner (PEP).

Despite the slight drop in fee income, which fell from £169.5m to £167m, PEP has risen for the second year in succession, up to £457,000 from £446,000. The firm added that its margin stood at 27%, up from 26.5% in 2011-12.

The news comes after Addleshaws this December announced half-year turnover was down 3%.

The figures follow an eventful year for the firm, which has embarked on a major programme of international expansion including launches in Dubai, Singapore and Oman, with bases in Qatar and Hong Kong set to open this month.

Last October saw the re-election of Monica Burch for her second term as senior partner, while over the course of the year the firm brought in 17 new partners and saw its paralegal-led transaction services team in Manchester grow to a size of more than 70.

Managing partner Paul Devitt (pictured) said: "Of course, we would have liked to have seen income growth for the year alongside the improved PEP and margin and so, in that sense, we're disappointed. Nevertheless, after a slow first half to the year, it was good to see some growth in the second half.

"Most significantly, we made strong progress with the following key priorities – we secured and improved important client relationships and panel positions; we further developed and embedded our innovative and adaptable delivery and pricing approach; we enhanced significantly our capability and reach outside the UK; and we increased substantially the strength in depth of our partner team.

"They are all key developments of the business. We are well positioned to win market share and grow."

The firm was this year reappointed to Network Rail's legal panel, while also winning two spots on the Government Procurement Service's employment and IT panels.

Other key developments for the firm have seen it move to ramp up the use of flexible working by its lawyers following a six-month consultation with staff on how it can work more efficiently.