Denton Wilde Sapte has unveiled a 36% fall in partner profits after a £3.5m restructuring charge contributed to a squeeze on profits.

Dentons today (4 June) unveiled its financial results for the 2008-09 year, confirming that its underlying profits per equity partner (PEP) fell annually by 27% from £470,000 to £340,000.

However, profits were further hit by restructuring costs related to the firm's redundancy programme, the full cost of which has been incorporated into its 2008-09 year, pushing PEP down to £300,000. Total profits before exceptional costs were £29.3m, down from £40.4m the previous year.

Despite the sharp fall in profits, Dentons managed to maintain modest revenue growth with fee income rising 3% from £164.4m to £169.8m.

The firm cited continued growth in its Middle Eastern network, including a 26% rise in revenues in Dubai. The firm's international network currently accounts for around 25% of its revenue. Dentons' fastest growing practice group was technology, media & telecoms, which was up nearly 12%.

Dentons chief executive Howard Morris told Legal Week that the firm had managed a strong first half to its financial year before "activity fell off a cliff in mid-October". Morris added that activity levels appeared to have stabilised more recently with the firm achieving a stronger performance in May 2009 than in the same month in 2008.

The result is the sharpest fall in PEP yet announced in 2009 by a major UK law firm but comes amid expectations that most major City firms will see falling profits thanks to the current recession.

Dentons has taken a number of measures to position itself for a prolonged downturn, confirming this week that it had asked equity partners to contribute an average of £90,000 of capital into the business.

The firm's redundancy consultation concluded in March with the loss of 76 jobs, including 37 fee earners.