Ashurst has delayed its partner profit distributions following a fall in profit per equity partner (PEP) and revenue.

Partners have still taken monthly drawings but the firm has held back the quarterly profits payment, which was due in August.

In a statement, the firm said: "We have always had a conservative and prudent approach to cash management. Our policy is not to borrow to pay out profit to partners."

The firm last delayed profit distributions in 2012 and at the time said that decision had been made to avoid borrowing to pay profits.

Ashurst posted disappointing financial results last month, with turnover dropping 10% and PEP falling to £603,000, 19% down from last year's figure of £747,000.

Earlier this month, the firm's partnership voted to overhaul its partner remuneration structure, adding an extra 10 points to the top of the equity ladder and introducing a bonus pool. The changes take the top of the equity ladder from 65 to 75 points for star performers. The bottom of the ladder will remain at 25 points.

One Ashurst partner said those changes had led some partners to expect a delay in distributions. The partner said: "It doesn't surprise me. They spent a lot of time leading up to the remuneration changes talking about the firm being undercapitalised compared to competitors, and many of us speculated on what the consequences of that could be."

King and Wood Mallesons has also delayed partner distribution payments recently. The firm moved to a monthly distribution system in February after repeated delays to its quarterly payment system.