Lovells has posted a 21% drop in average profits per equity partner (PEP), according to figures to be released this week, with the top 10 City firm’s PEP plunging from £541,000 to £427,000.

The figures for its 2004-05 year, which also include a 3% fall in turnover to £366m, will be taken as a blow, although the firm had been gearing up for a sharp fall in profits. The results are among the worst yet seen this year from a top 50 UK firm.