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

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, compared with 123 at the same point in 2008, with equity partner numbers increasing by four to 95. Separately, Nabarro last week launched a second redundancy consultation 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.

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."