Freshfields has overtaken magic circle rival Clifford Chance as the biggest UK firm by revenue, posting a 9% rise in turnover to £1.29bn for the year ended 30 April. Profits per equity partner (PEP) were static at £1.44m.

Clifford Chance, which was the largest firm by revenue in 2007/08, yesterday reported a turnover of £1.26bn, down 5% on last year’s £1.33bn.

Freshfields chief executive Ted Burke said that his firm’s revenues were ‘enhanced significantly by fluctuations in exchange rates’ and estimated that more than 60% of the firm’s income came in euros and dollars. He said that if exchange rate movements were stripped out, revenues would have been down by 2%.

‘We are fortunate to have come through a challenging year in relatively good shape, thanks to a large number of restructuring and other complex mandates,’ he said. ‘We had many people working particularly hard on these matters and we are proud of their contribution to the success of our clients.

‘We expect that this financial year will be more difficult for us, at least from a financial perspective. Our focus will continue to be on helping our clients through this difficult period.’