Linklaters has become the largest firm in the UK by revenue, edging marginally ahead of Freshfields Bruckhaus Deringer.

The magic circle firm has reported virtually static turnover of £1.298bn for 2008-09 compared with £1.293bn last year. The figure puts it just ahead of Freshfields, which yesterday announced revenues of £1.287bn.

Internationally, Asia and the US brought in 11% and 6% of Linklaters' revenue respectively, with Europe and the Middle East making up the balance. London remained the firm's biggest revenue generator.

However, by profits per equity partner (PEP), Linklaters lags slightly behind Freshfields, after announcing a 9.5% dip to £1.3m, down from £1.44m in 2007-08.

In contrast, Freshfields managed to keep its revenues roughly flat at £1.444m, making it the most profitable UK firm to announce its results to date.

Linklaters' falling PEP and static turnover came despite high profile mandates such as advising PricewaterhouseCoopers as administrator of fallen investment bank Lehman Brothers. The mandate, which at one stage was thought to be earning the firm more than £1.25m a week in fees, has kept swathes of London lawyers busy throughout the downturn.

However despite the instructions Linklaters conducted a far-ranging restructuring earlier this year, resulting in around 200 lawyers and 200 business support staff losing their jobs globally – of which around half the cuts were in London.

The process, dubbed Linklaters New World, was also expected to see around 35 partners worldwide leave the City giant by the end of the year, although the firm has not confirmed official numbers.

Managing partner Simon Davies said the bulk of the restructuring costs have come out of the 2008-09 results, impacting on PEP.

He told Legal Week: "I think that one needs to look at last year as an exceptional time. We were bought into crisis situations by our clients and there was a huge amount of complexity involved.

"From mid-September onwards was an inspirational time to be at the firm – the commitment and creativity our people showed was astonishing."

Earlier this week (1 July) CC announced lost its crown as the UK's largest law firm by turnover. Revenues for 2008-09 came to £1.262m, down from £1.329m in 2007-08 but the drop was softened by the weaker pound. PEP plunged by 37% – dropping from £1.156m to £733,000 – around half that of Freshfields.