Macfarlanes has posted a 16.7% fall in profit per equity partner (PEP) in the last financial year as net profit for the firm fell 8.9%.

The firm held its revenue steady at £161.03m, which marked an increase of 0.9% on last year's £159.6m.

In the financial year ending 30 April 2016, its net profit fell to £74.5m, a decline of 8.9% on last year's result of £81.7m.

PEP also fell, from £1.55m in 2014-15, to £1.29m in 2015-16 – a decline of 16.7%

The fall in performance in 2015-16 follows two years of impressive growth for the firm, with revenue growing by 22% and PEP climbing by 21% in 2013-14, and revenue rising by 14% in 2014-15 alongside a 29% hike in PEP.

Macfarlanes senior partner Charles Martin (pictured) said: "These results represent a positive trend, which is good to see given our previous record-breaking year.

"Last year saw us invest in our people and do great work across the firm including leading roles in the largest public deal (SAB Miller) and the largest private deal (Visa) in Europe. All our people stand to be congratulated on a good outcome and a busy year across the firm. This year will be more challenging I suspect."

In 2014-15, the firm's average PEP of £1.55m saw it second only to Slaughter and May in terms of profitability among UK firms.

That year, it said its results had been flattered "by the release of provisions last year for overdue fees that were subsequently settled".

Macfarlanes recently boosted its associate pay, with newly qualified lawyers receiving £71,000 a year. The firm also overhauled its bonus system, with lawyers set to receive more if they perform well and the firm exceeds its annual revenue targets.