Freshfields Bruckhaus Deringer, the leading London-based law firm, on Monday unveiled a near-40 per cent rise in profits, in the latest striking evidence of the legal profession’s continued prosperity amid the fall-out from the credit crunch.

Ted Burke, Freshfields’ chief executive, said the firm had enjoyed “a good year, no doubt about that”, but insisted this year would be tougher as the legal sector started to feel the effects of corporate deals drying up.