The ‘pressure is still on’ mid-tier corporate firms, research by accountants PricewaterhouseCoopers has shown, despite strong revenue figures for the last quarter.

The latest figures from PwC’s quarterly law firm benchmarking survey indicate that, although revenues held up well during the traditionally quiet period to 31 January, this was attributable to further staff cuts rather than an upturn in work.

For the top 10 firms, fees per fee-earner rose 5% on the previous quarter, to an average of £90,000 – up 12% on the same period in 2009. Mid-tier firms in the 11-25 bracket increased average fees per fee-earner by 15% compared to 2009, to £60,000.The top 10 firms saw average profits per partner rise 4% on the previous quarter, to £238,000, while the mid-tier firms achieved a 5% rise, to £100,000.

However, the survey showed that mid-tier firms have implemented deep staff cuts in the last 12 months, slashing headcount by an average of 21% and cutting support staff by 27%. The top 10 firms made an average headcount reduction of just 5% and cut support staff by 10% over the past year.

PwC partner David Snell said: ‘It is intensely competitive in the mid-tier. The pressure is still on that category of firms.‘Revenues held up very well in the quarter ending 31 January, but [the figures suggest] the improvement is primarily from a reduction in headcount. There has not been an increase in the volume of work, and firms are still facing a difficult environment.’

Snell added that larger firms were benefiting from a ‘flight to quality’ by clients who wanted the assurance of a magic circle firm in difficult economic times.