The chief executive of the Johnston Carmichael accountancy firm said it would be �open to discussion� with potential merger partners in Glasgow as the company looks to maintain the growth achieved in the latest year.

The chief executive of the Johnston Carmichael accountancy firm said it would be "open to discussion" with potential merger partners in Glasgow as the company looks to maintain the growth achieved in the latest year.

Sandy Manson said a strengthened presence in Glasgow would be a focus of future growth plans in the key central belt, where the firm grew revenues by 25% in the year to May.

This helped Johnston Carmichael, which claims to be Scotland's largest independent firm of accountants, grow total fee income by 8%, to £24.5m in the year.

While the increase was driven by organic growth, Manson noted that turnover in the last three months of the year had been boosted by the takeover of Duncan Young, a three-partner firm with offices in Edinburgh and Fife.

He noted that the increasing demands imposed by the growing regulatory burden and the needs of clients might prompt the owners of some smaller firms to sell up.

Manson also sees opportunities to strengthen the company by poaching staff who have worked with leading rivals like the giant international practices.

The shake-out in the financial services may allow the firm to make "transformational" hires.

However, while the firm will be alive to opportunities to expand its geographic presence, Manson said partners were braced for conditions to remain challenging.

"We are not out of the woods yet," he said.

Clients continue to face difficulties raising credit on acceptable terms. The company focuses on privately-owned firms.

Manson was pleased that Johnston Carmichael had made progress against a tough market backdrop in the year to May.

The company grew revenues from audit and assurance work and tax. Demand for outsourced services like payroll and management accounts preparation increased as clients looked for efficiencies.

However, the corporate finance division was affected by the slowdown in deal activity.

The company increased employee numbers during the year, from 385 to 417. Manson said "one or two" people had been made redundant on the administration side.

Asked whether the company increased profits during the year, he said: "We do not disclose details of profits. It's been a tough year but we will continue to invest and to take a long-term view."

Separately, PricewaterhouseCoopers, the Big Four accountant, has appointed three additional partners in Scotland.

Richard Slater, a pensions specialist in the tax practice, and David Brown, in Performance Improvement Consulting (PIC), have been promoted internally.

Steve Davies has transferred from the US to head the PIC's financial services team in Edinburgh.

PwC's operation in Scotland will recruit more than 70 graduates this year, in line with 2008 and 2007.