Results season among City law firms ended today as Linklaters announced its figures. They were eagerly awaited: would it surpass Clifford Chance as the world’s biggest firm? Would it match the astonishing rise in profitability of bitter rival Freshfields?

No, and yes. The first will not trouble Linklaters much; the second will. Of the two firms, Linklaters has appeared the more confident in recent years, while Freshfields drifted. But after a difficult and very public restructuring, profits per equity partner (PEP) at Freshfields shot up a staggering 40 per cent last year to £1.439 million. Linklaters managed to beat that, but only by a whisker, at £1.441 million.

Regardless, all of the top four firms have reason to feel smug - the income from each topped £1 billion, while the gap between them and the rest of the City may now be insurmountable. Turnover at the fourth-largest firm, Allen & Overy (£1.02 billion), was more than twice that of the next-largest firm, Lovells (£479 million).

In spite of the widening gap, City firms across the board enjoyed a record year, with most of the top 50 increasing turnover by between 10 and 30 per cent. Credit crunch? What credit crunch?

Recession-proof? No, actually. It's just that law firms are typically among the last to feel the effect of an economic downturn. We will have to wait until next year’s figures to get a true picture of how badly law firms are being affected by the credit crisis.

Few would dispute, however, that the boom is over. Observers are now predicting a period of consolidation in the mid-market. Without the global reach of the top four to insulate them, those firms will find it increasingly tough, particularly if there is a “flight to quality” among clients. Those who do not already have a clear strategy and strong management will struggle to survive.

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