Eversheds has posted a three per cent drop in turnover for the first six months of the 2010-11 financial year.
The firm brought in £172.6m to the end of October, down from £178m for the comparable period last year.
CEO Bryan Hughes said: “With market conditions still uncertain, many sectors remain cautious at best and pricing tensions remain. Our results [are] a reflection of a challenging market.”
Eversheds made £355.2m in the full year ending 30 April 2010.
To date five firms in the top 10 have reported their half-year results. The average rate of growth within this group is five per cent.
The increase is higher outside the top 10, however, with Barlow Lyde & Gilbert and Wragge & Co posting rises of 17 and 15 per cent respectively.