Linklaters sees revenues drop by almost 10% at half-year stage

Linklaters has reported a 9.5% drop in revenue for the first half of the 2009-10 financial year.

The magic circle firm took in fee income of £591m for the six-month period closing at the end of October, compared with £653m for the same period last year. At that time the firm saw a 3% increase in turnover for the first half of 2008-09.

Linklaters is only the second magic circle firm to announce its half-year figures after Allen & Overy, which posted a 7% drop in revenue to £511m from £548m. The fall in turnover comes despite Linklaters winning roles on some of the most high-profile mandates stemming from the financial crisis - including the collapse of Lehman Brothers in Europe.

Linklaters' managing partner Simon Davies (pictured) commented: "Our results are in line with our expectations and reflect the continuing challenging environment for our clients and, in particular, the subdued level of global M&A activity.

"While we do not expect a rapid recovery in the market, we have seen an upturn in our activity levels on the second half of last year particularly in the BRIC and Middle East markets where we have very strong capability. Our priority remains to support our clients through these difficult market conditions."

H1 results so far have been mixed, with some firms - such as Bird & Bird and Beachcroft - reporting double-digit increases in turnover, while others, such as Simmons & Simmons, have seen drops of up to 16% in revenue.

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