The UK’s top law firms are surging ahead on the back of the explosive European deal market, with half-year figures compiled by Legal Week showing London’s leaders primed to challenge Wall Street rivals in profitability.

Current results suggest the entire magic circle could break the £1m average equity partner profits mark in 2006-07, while the majority of the UK’s top 25 are on course for record results with an overall half-year turnover rise of 12% against the same period last year.