City firm Nabarro today reported profits down by 35% and revenues down by 10%, describing the result as ‘disappointing’ but ‘not surprising’.

Profits per equity partner declined from £574,000 in 2007/08 to £375,000 in the year ended 30 April. Revenues fell by 9.7%, from £140m to £126.5m. The firm’s profit margin dropped from 39% to 28%.

Nabarro senior partner Simon Johnston said: ‘While the drop in revenue and net profit is disappointing, it is not surprising in such challenging economic times. The firm's success over the past five years has ensured that we have a very strong platform from which to maintain and continue to build our business.

‘That platform has also allowed the firm to continue its strategic investment programme of recruiting lateral partners into the firm with key client relationships and strategically significant practice areas. We are also able to continue to invest in our clients and the future of the firm, by maintaining a dedicated commitment to our graduate recruitment programme and our trainees.’