Staff at takeover advisory boutique Hawkpoint are working flat out despite the collapse of the mergers and acquisitions market.

Managing partner Paul Baines said the company, bought by Terry Smith's Collins Stewart for £125 million in 2006, said it had pushed hard into the corporate restructuring market and, although profits last year were down from the £17.8 million it made in the bull market days of 2007, it still posted a creditable underlying profit of £8.6 million.

Baines, whose pay fell by £500,000 to £1 million for the year, said: “There are 150 people here and everybody is very busy.”

Turnover tumbled nearly a third to £41 million, according to figures just filed with Companies House.

The firm's highest-profile restructuring contract now is advising Iceland's government on its dealings with creditors of the bankrupt country's banks.

More traditionally for Hawkpoint, Baines is personally working with training group BPP on yesterday's £303 million takeover approach from education group Apollo.