The chief executive of Scotland's biggest independent accountancy firm said the challenges faced by the profession's Big Four and banks amid the credit crunch would boost small firms by making it easier for them to recruit.

The chief executive of Scotland's biggest independent accountancy firm said the challenges faced by the profession's Big Four and banks amid the credit crunch would boost small firms by making it easier for them to recruit.

Sandy Manson said Johnston Carmichael could cash in on the difficulties faced by bigger fish by hiring experienced staff who find their career prospects are dimmed as a consequence of the slowdown in financial markets.

Announcing 12% growth in fee income to £22.6m for the year to May, Manson said he believed the turbulence affecting credit markets would provide independents with opportunities to gain ground on giants.

The giant global accountancy practices and banks have relied on mergers and acquisitions work involving big corporations to maintain profitability, which will come under pressure unless debt becomes easier to come by.

Headquartered in Aberdeen, Johnston Carmichael focuses on family-owned businesses covering a range of sectors in Scotland. Many have cash in the bank, meaning they are less exposed to credit market problems.

Manson admitted that there was some anxiety among clients about how long the current uncertainty regarding the economic outlook would last and how bad things might get.

However, while firms in construction were under pressure, sentiment in many other sectors was much brighter.

He said Johnston Carmichael expected to recruit across all areas of the business in the current year. The firm plans to beef up its presence in Glasgow and Edinburgh.

While Johnston Carmichael achieved growth across the board in the year to May, Manson highlighted the windfall effect of controversial changes to the Capital Gains Tax regime by Chancellor Alistair Darling. The reforms triggered a surge in personal tax work ahead of the implementation of the changes in April.

Manson declined to give any indication of profitability at the firm, which has 38 partners.

Asked if profits increased in the latest year, he said: "Profits are moving forward but we are putting a lot of reinvestment into our business."