Lawyers on Demand (LoD) paid £2.75m to spin off the legal resourcing business from parent company Berwin Leighton Paisner (BLP), according to accounts recently filed with Companies House.

Amended accounts for the 2012-13 financial year – filed at the end of April – show that the company financed the June 2012 acquisition through a £2.65m loan from BLP, alongside a £100,000 investment from shareholders.

The loan is repayable in June 2015 and incurs interest at 12.5% a year.

The accounts also show that the business, in which BLP has an 80% stake, posted turnover of £7.9m for the 11-month period between launch and the end of the financial year. Meanwhile, cash at bank and in hand totalled £664,000, meaning net debt at the 2013 year end stood at £2.3m. Sales of £1.8m were made to BLP during the period.

The group's operating profit was £724,000, while staff costs totalled £816,000 and the average full time equivalent number of employees during the year was eight.

Turnover for May-June 2012 came to just over £800,000, taking the full year revenue figure to £8.7m.

In January this year, BLP confirmed a 32% drop in profits for 2012-13, with net debt increasing by £19.8m. The firm's net debt stood at £34.6m, a 134% increase on the previous year's figure of £14.8m.

The rise in debt was largely down to new bank loans, with a total of £31.1m taken out during the year. The loans took total bank borrowing to £45m, a 223% hike on the figure of £13.9m at the end of the previous financial year.