The accountancy firm recorded a £7.4m drop in profits for the year ending 1 July 2011, down to £12.6m compared to £20m for the same period ending 2010.
Turnover for its worst-hit core business stream also suffered more than a £10m fall as it fell to £39.6m from £50.6m over the past 12 months.
The monthly average number of employees employed within the restructuring sector also fell by 15.
Overall net turnover for the fifth largest accountancy firm fell to £273.4m from £297.5m and staff numbers dropped to 2,419 from 2,538 the previous year.
Managing partner Simon Michaels blamed the falling restructuring on a reduction in market activity but remained positive for the general health of the firm.
He said: "Once again, we were faced with tough and uncertain economic conditions and this looks set to continue over the medium term.
"In this context our overall financial performance was solid with improved profitability and targeted, successful investment maintaining the momentum of the business.
"We returned strong growth in the area of risk and regulation, including forensic and risk advisory services. Elsewhere audit, tax and corporate finance revenues maintained market share in spite of continued pricing pressures."
By Andy Pearce