Revenue for 2008 stayed level at £49.1m.
Towry Law chief executive Andrew Fisher says the fall in pre-tax profits is due to significant investment in the company’s infrastructure.
He says: “We spent up to £7m on reshaping internal systems. Last year was a good year for us and this year looks to be another good one. There are a lot of acquisition opportunities in the market.”
The directors did not approve a dividend during the year.
Towry Law company secretary Jacqui Gregory says: “The company posted an operating loss of £287,000 in 2008 compared to an operating profit of £3.3m in 2007. The marketplace in which the company operates has been severely hampered as a result of the US sub prime lending crisis and its knock on effect on UK banks had a negative impact on stock markets and resulted in considerable volatility. This is turn has had an adverse impact on investor confidence.
“The company will continue to offer a fee-based service in 2009, with the business expected to grow through both organic growth and small acquisitions.”