Keoghs spent £893,000 on its bid for parts of Parabis Group, which ultimately fell through in November 2015, according to the firm's 2015-16 accounts.

It is understood the Bolton-based firm spent the entirety of this sum on lining up a deal for parts of struggling insurance rival Parabis, including its legal business Plexus Law.

The firm first emerged as a potential suitor for Plexus Law in autumn 2015, holding talks to acquire parts of Parabis as it descended into insolvency. However, these talks were called off in November that year, with Parabis agreeing to sell the bulk of its business, including defendant law firms Plexus Law and Greenwoods, to a consortium of private individuals led by Plexus Law founder Andrew McDougall.

Later that month, the private equity-backed alternative business structure (ABS) entered administration and was broken up into seven pre-pack sales.

Keoghs' accounts also show that the firm's operating profit grew 10% during 2015-16 to £11.3m, while revenue grew 7% to £58.2m.

A separate Companies House filing has also revealed that Keoghs refinanced its debt in July, giving Royal Bank of Scotland a charge over its assets. The firm switched to RBS as its key banking partner instead of Lloyds last year.

Keoghs finance director Alex Hodgson said: "We continue to be supported by our investment partner, LDC, and our new banking partner, RBS. In July, we took advantage of the liquidity in the banking market to refinance our bank facilities with longer-term and more flexible facilities at reduced pricing, and at the same time extended the term of the loan notes issued to LDC."

According to the LLP accounts, the firm has £35.6m of loan notes outstanding. The repayment date has been extended from August 2017 to August 2021.

It also has a credit facility with a five-year term, which it arranged in 2013. The firm owed £3.1m for 2015-16, which it has paid in full after the end of the financial year.

The credit facility and loan notes are both secured by a charge against the assets of the group in favour of the lender.

Private equity company LDC took a 22.5% stake in Keoghs in 2012, after the Solicitors Regulatory Authority approved its conversion to an ABS.

Following the breakdown of talks with Parabis, Keoghs launched an office in Southampton in July last year, with the hire of an eight-partner team from BLM led by Mike Renshaw, BLM's Bristol and Southampton head.