City firm Taylor Wessing today reported global profits down by almost 14% despite a small rise in turnover, with its UK business hit hard by the economic downturn.

The firm estimated that profitability in the UK was down 30% on 2007/08, with UK turnover falling by 5.7% to the year ending 30 April. A slump in finance, real estate and corporate work in the UK was blamed for the falls.

A 13.7% reduction in profitability across the firm meant that profits per equity (PEP) partner fell from £448,000 to £436,000. Taylor Wessing said the profits fall was down to ‘continuing investment across the firm’.

Turnover across the firm rose 1.7% to £188m in 2008/09, compared with £185m in 2007/08.

UK managing partner Tim Eyles said: ‘Given the challenging market conditions we are very happy to have increased turnover across the firm. Few law firms are going to look back happily on 2008/9, but we believe we have strengthened the firm by avoiding large scale job losses and by clearly focussing our investment.

‘I am confident that the decisions we have made, while impacting on short-term profitability, will be crucial to securing the future success of Taylor Wessing.’

Taylor Wessing is based primarily in the UK, France and Germany, with further offices in Brussels, Beijing, Alicante, Dubai and Shanghai.