Allen & Overy today reported a slight fall in profitability on top of a rise in turnover, as it became the last magic circle firm to release its financial results.

Revenues at the firm rose 7% from £1.02bn in 2007/08 to £1.09bn for the year ending 30 April 2009, although the firm admitted the rise was ‘flattered by the weakness of the pound’. Profits fell 4% from £447m to £431m, while profits per equity partner fell 9% from £1.1m to £1m over the same period.

The results mean that Linklaters leads the magic circle in terms of revenues (£1.3bn), followed by Freshfields (£1.29bn), Clifford Chance (£1.26bn), and Allen & Overy (£1.09bn).

Allen & Overy said it spent £46m on its recent restructuring, which led to 450 staff leaving the firm – 9% of its global headcount at the time. It now has 5,000 staff.

The firm reported that, for the second year running, 50% of its income came from outside the UK, and noted ‘healthy’ performance in Western Europe and the Middle East. Two-thirds of its work involved offices in two or more countries.

Managing partner Wim Dejonghe said: ‘This has been an exceptionally challenging year for businesses everywhere – including ours. We have not been immune to the impact of the global recession. We took swift and comprehensive action, now behind us, to align ourselves with the market and ensure the long-term sustainability of our business. Market conditions in the year ahead will no doubt remain challenging.’