Nabarro has reported a 9.7% drop in revenue for the 2008-09 financial year while profits per equity partner (PEP) have fallen by 35%.

Unaudited figures from the firm show that revenue for the last financial year stood at £126.5m down from last year's equivalent figure of £140.1m.  PEP fell to £375,000, down from last year's equivalent figure of £574,000.

The figures, which come after five consecutive years of revenue growth, show there was growth in the projects and litigation practices and in specialist practice areas such as competition, environment, employment and financial services.

The firm has also launched its second redundancy programme set to affect 19 fee earners and business support staff with 10 associates across the practices and nine other legal and business services staff under threat. The firm said that employees affected will be given professional outplacement advice and counseling.

Nabarro said the decline in turnover and PEP was disappointing but expected. It stressed that while the firm had taken steps to control costs, including a redundancy consultation, it had continued to invest in the business, making 11 lateral partner hires during the year and opting not to defer new trainees. Partner numbers at the firm stood at 135 in April this year, compared with 123 at the same point in 2008, with equity partner numbers increasing by four to 95

Simon Johnston, senior partner at Nabarro 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.

He added: "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"