Linklaters revealed record full-year revenue of £1.29 billion on Friday, edging past Freshfields Bruckhaus Deringer as Britain’s highest-grossing law firm. However, pre-tax profit fell by 9 per cent to £513.6 million as Linklaters absorbed millions in restructuring costs.

The firm has made redundant about 400 lawyers and support staff in a cost-cutting drive this year, while dozens of partners have been forced out.

Freshfields held the position of top firm for only a day after reporting turnover of £1.287 billion for the year to April 30, £11 million less than Linklaters. Both firms surged ahead of Clifford Chance, formerly the world’s biggest law firm by revenue, after its turnover slid by 5 per cent to £1.26 billion. Allen & Overy is expected to complete the big four’s results by publishing its figures next week.

After several years of growth, Britain’s biggest firms were overtaken this year by Skadden, Arps, Slate, Meagher & Flom and by Baker & McKenzie, the largest American firms, which produced fee income of £1.35 billion and £1.34 billion respectively.

Linklaters’ top partners, including David Cheyne, its senior partner, Tony Bugg, a lead lawyer who worked on Lehman Brothers’ collapse, and Robert Elliott, who handles the firm’s relationship with Royal Bank of Scotland, will receive an average of £1,302,000 — about 10 per cent less than last year. Rivals at Freshfields earned an average of £1,440,000, while partners’ profits at Clifford Chance slid 37 per cent to £733,000.

Simon Davies, Linklaters’ managing partner, said that the firm’s revenue had been boosted by mandates arising from the financial crisis. “Our results reflect exceptional circumstances,” Mr Davies said. “Clients have turned to us in the crisis to resolve issues of great magnitude and complexity. Often we have fielded substantial teams from many jurisdictions and with expertise in many areas of law.”

After Lehman Brothers collapsed last September, Linklaters secured a lucrative role advising on the administration of its European division. One of the biggest mandates to have emerged for a law firm from the financial crisis, it has kept hundreds of lawyers busy and generated more than £30 million in fees. In addition, Linklaters worked on Woolworths’ insolvency and advised the Royal Bank of Scotland on its capital-raisings and on the controversy over Sir Fred Goodwin’s pension.

It was also the top-ranked law firm globally on mergers and acquisitions in 2008, advising on 267 deals worth $728.5 billion, according to Mergermarket, the data provider. The firm’s corporate department was built into a powerhouse by Mr Cheyne and boasts several talented young partners, such as Charlie Jacobs, a South African who specialises in mining and energy deals.

However, Mr Davies said it was “very, very unlikely” that the double-digit growth of recent years would return in the foreseeable future.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive