In revenue terms, Allen & Overy (A&O) was the strongest performing of the magic circle firms this year, seeing revenue dip just 3.8% over the period compared to an average decline of 7.2% across the group.

The magic circle firm saw profits per equity partner (PEP) increase 10% to £1.1bn, boosted in part by a 3.2% decrease in equity partner numbers, which have fallen from 370 to 358 over the last financial year in the wake of a major restructuring exercise.

Over the last year, figures show that 28 partners exited the firm's partnership,
taking partner headcount from 486 to 458. Profit before tax was up just 0.4%, from £428.8m to £430.9m.

The 2009-10 results see the distribution range from £661,000 at the bottom end of the equity partnership up to £1.65m for top earners. In 2008-09 the range was £538,000-£1.35m.

In light of the figures, managing partner Wim Dejonghe said that the firm's restructuring – which had cost a total of £46m in the previous financial year and targeted a 9% cut across the board of partners, associates and support staff globally – had been the right thing to do.

He commented: "The markets are uncertain and I don't expect the coming year to be any easier than the one we had. Strategy choices included the restructuring, but also investing in the right areas. Focusing on the top-end of the market has paid off."

During the last year, A&O has focused on building its international practice. It has launched new offices in Sydney, Perth, Doha and, since the end of the financial year, Jakarta.

A&O has further grown the share of revenues from its international offices. Overseas income now makes up just short of 60% of the firm's total turnover.

For more of 2009-10′s standout firms, see: