Linklaters’ financial performance has outstripped that of its magic circle competitor Freshfields Bruckhaus Deringer with the firm reporting even better financial results than previously expected.

A review of Linklaters’ final figures for the 2004/05 financial year has shown that average profits per equity partner (PEP) have risen by a staggering 25 per cent to reach £845,000, up from £674,000 the previous year.

This compares with indifferent results at Freshfields, where PEP increased 4 per cent to £700,000, up from £674,000 last year. However the firm’s turnover has slumped 0.5 per cent to reach £780m, down from £785m.

The financial results see the two firms switch places in the UK league tables based on revenue, with Linklaters soaring ahead with a 12 per cent increase in turnover to £805m, up from £720m last year.

Linklaters first reported an estimated 22 per cent rise in PEP in May, however this has been revised up following a strong second half of the year assisted in particular by the resurgent corporate department.

As a result, partners at the top of equity at Linklaters will receive £1.065m compared with last year’s figure of £864,000.