JOHNSTON Carmichael chief executive Sandy Manson has said the accountancy firm may well open offices in England after growing profits per partner by five per cent in the latest financial year and underlined its interest in the Central Belt.
The firm, Scotland’s largest independent chartered accountancy operation, achieved £222,000 profits per partner in the year to 31 May compared with £211,000 in the preceding period.
The increase reflected strong growth in revenues at the Aberdeen-based firm, which Mr Manson said owed much to the success of its drive into the Central Belt.
He noted the firm grew revenues in the area by 14 per cent in the latest year. Group turnover rose seven per cent.
Growth in areas such as Glasgow and Edinburgh has offset the impact of the downturn in the firm’s heartlands in North East Scotland triggered by the sharp fall in the crude price since 2014.
Mr Manson said the Aberdeen and North East market continued to be challenging in the year to May.
He welcomed signs that sentiment has started to improve in the area amid the partial recovery in the crude price since oil exporting nations agreed last November to curb production to support the market.
However, Johnston Carmichael appears to think other areas offer better growth opportunities.
Mr Manson noted the firm recently doubled its office space in Glasgow. It added 20 per cent more floor space in Edinburgh.
He indicated a move into England may follow before long.
“Could we grow south of Scotland, we keep an open mind,” noted Mr Manson adding: “It may well happen in due course.”
Asked if Johnston Carmichael was looking at offices in any centres south of the border, he said the firm kept an eye out for opportunities but nothing was imminent.
Johnston Carmichael has not seen any evidence that overseas investors are less likely to put money into the UK following the Brexit vote. It belongs to the PKF global network of firms.
“The question is raised but we are detecting a sentiment that for all the political machinations a workable solution will be found,” said Mr Manson.
Firms in Scotland appear to be investing for growth.
Asked whether Johnston Carmichael might make further acquisitions he said: “We are always having conversations to see if there is merit in combining.” It will prioritise organic growth.
The firm expects it will continue to recruit around 30 trainees annually, including some school leavers.
The limited liability partnership grew revenues to a record £43.7m in the year to 31 May, from £40.8m. Net profit before partners’ remuneration increased by five per cent, to £12.2m from £11.6m.
Mr Manson said revenues rose in the majority of service lines. Growth was particularly strong in the tax and wealth management divisions. New pensions freedoms have stoked demand for advice.
The firm won some notable new audit clients including Holyrood Distillery.
Restructuring revenues fell in the year to May but increased strongly in the latest six months.
Johnston Carmichael said its investment in growth in the year to May had involved the firm making strategic additions to its corporate finance and restructuring teams as well as a number of significant tax specialist appointments.
It has invested substantially in technologies in areas such as data analytics.
Founded in 1936, Johnston Carmichael has 700 staff and partners working across 11 locations in Scotland.
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