Travers Smith PEP fell sharply in the most recent financial year by 20%, alongside a fall in profits and a revenue slip down of 1%.

According to a statement by the firm on Thursday, PEP dropped dramatically to "approximately £1 million" for the year ended June 2020, down from £1.25 million in 2019.

Its net profit figure, which the firm does not announce, fell by 11%, while its revenue dipped by 1% to £160.9 million

The firm's financials mark a reversal of its previous fortunes. In 2019, the firm grew its top line by nearly 11% to hit £162.5 million while the year before that revenues grew by 17%.

The firm said in a statement that the latest results reflect "the impact of the ongoing crisis, Brexit uncertainty over the course of the last year, and continued significant investment in the firm's people, systems and processes, which have enabled the firm to continue to operate effectively during the lockdown".

During the coronavirus-induced lockdown, Travers reduced monthly drawings for all of its partners, and deferred partner profit distributions and has delayed annual salary reviews until later in the year. The firm said in the statement that it has now awarded firm-wide bonuses, though at a reduced rate.

Firm managing partner David Patient said in a statement: "The last few months have seen trading conditions unlike any that we have previously experienced but, despite that, the way we have reacted to the COVID-19 crisis has exceeded all of our expectations.

"Inevitably, the lockdown, which coincided with the crucial last quarter of our financial year, has had an impact on our provisional year end results, with turnover falling by approximately 1% compared with last year. However, this year's results come after an uninterrupted 10 years of consecutive growth.

He added: "Our profits may have fallen, but in the circumstances I am more than happy with these results and, overall, they reflect the best part of nine months' strong trading, and then the inevitable impact on our business of the worst economic and health crisis any of us have ever experienced."

Top law firms have revealed muted growth in their most recent financial results in contrast to a strong 2019, though some firms such as TLT and Stewarts have announced double-digit revenue increases.

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