ACCOUNTANCY firm BDO has seen a surge in revenue and profit as it began to see the benefits of its merger with PKF.

BDO, which employs 187 in Scotland across offices in Edinburgh and Glasgow, said its turnover increased 27 per cent to £384 million in the 12 months to July 4 with its three main operating segments all reporting growth.

The advisory arm saw a 39 per cent leap to £157m, the audit practice recorded a rise of 19 per cent to £128m while the tax business grew 21 per cent to £99m. Operating profits increased 42 per cent to £78 million.

The firm said its average profit per equity partner grew by 15 per cent to £275,000.

Martin Gill, head of BDO in Scotland, said: "It has been a significant year for us. We ensured our merger with PKF was a success and that it did not distract us from providing the level of service that our clients expect."

In Scotland the firm counts potato firm Albert Bartlett, cheese maker Lactalis McLelland and leisure and pubs group G1 among its clients.

Mr Gill is hopeful of being able to increase the firm's share of the audit market for listed companies, especially as larger firms now have to put contracts out to tender more often.

He said: "Our merger has increased our sector capabilities, which has meant being able to attract new clients in more diverse areas.

"The larger company audit market has been through a significant change in the last year. Whilst the Competition Commission has addressed some of its flaws, we are realistic about short-term opportunities.

"We want to boost our market share of FTSE 350 audits to five per cent in the next five years."

Mr Gill said 14 new partners had been hired across the UK while in the region of 800 staff had been promoted during the financial year.

PKF and BDO merged in April last year.