Olswang more than halved its net debt during the 2014-15 financial year as it continues to weigh up possible merger options.

The firm reported net debt of £10.6m, down from £22.3m a year before, according to accounts filed with Companies House today.

Turnover increased 7% to £125.9m while operating profit grew 14.7% to £39.3m.

The Berlin office, which US firm Greenberg Traurig took over in October last year, accounted for 13% of the firm's revenue in 2014-15.

The improved financial position comes as the firm continues to review its options, with a merger seen as one alternative.

According to an ex-Olswang partner, the City firm called in a consultant last year who recommended that it consider a merger with either a UK or US outfit.

"There was a provisional report as a result of the consultation suggesting Olswang should merge," he said.

The firm has been interested in a merger for some time. It previously had an alliance with Greenberg, which it wound down in 2009 as Greenberg expanded in Europe, including opening a City office. It has also worked closely with Cooley, with Olswang understood to have looked at building on the relationship in recent years.

In the UK, firms including Bird & Bird and Simmons & Simmons have both also been previously discussed among partners as potential merger candidates.

"Merger discussions were on the table amongst the partners for some time and some felt it made life unpredictable," said one ex Olswang partner.

A spokesperson for Olswang said: "We are not engaged in a merger. Like other firms, we keep our strategy under review in the light of changing market conditions, and it appears this is the basis for this rumour."

Bird & Bird and Simmons declined to comment.