LGSS Law, a company owned by three local authorities, made losses of £1.2m in 2018/19, according to company accounts.
Documents filed with Companies House show that revenue at the firm declined from £8.7m to £7.8m, with the overall losses rising from £300,000 the previous year.
The firm is jointly run by Cambridgeshire County Council, Northamptonshire County Council and Bedfordshire Borough Council.
Debbie Carter-Hughes, executive director of LGSS Law said: “During the year the company implemented new and more rigorous procedures to manage revenue and costs with a view to achieving profitability going forward.”
During the year, Cambridgeshire County Council provided the firm with an overdraft facility of £499,000, of which £375,000 has been drawn down, the accounts showed.
