Johnston Carmichael has reported double digit growth in revenues to £36.8million on the back of record levels of investment, the firm said.
The firm’s latest financial results for the year ended 31 May 2014 show 10% growth in turnover from £33.4million to £36.8million and a “modest” rise in net profit before member’s remuneration, which is up to £10.75million compared with £10.57million last year.
Sandy Manson, Chief Executive of Johnston Carmichael, said: “The last financial year was one of record investment in our business. We hired more people than ever before taking our total headcount to beyond 600 as we increased the capability of every part of our business.
“While this investment has impacted our short-term profitability, we now have an ever stronger platform from which to serve the expanding needs of our clients both at home and abroad. This will enable us to continue to pursue our ambitious vision of being the accounting and advisory firm of choice in all our markets.
Mr Manson said the firm’s corporate finance team saw “strong growth” across Scotland. Meanwhile, its wealth division broke through the £3million revenue barrier for the first time, he added.
He said industry in the north-east was facing a “market correction” in the form of lower oil prices and clients would be looking to cut costs. But the diversified nature of the accountancy firm, which now has offices in 11 Scottish towns and cities including Edinburgh and Glasgow, was bolstering the firm’s future outlook.
The firm also joined forces with PKF International last year in September, which allows it to link up to similar firms globally.
“If you look ahead, with the market correction going on, you can’t take anything for granted,” said Mr Manson. “Johnston Carmichael is a very diverse business. While we are headquartered in Aberdeen, we are seeing the Edinburgh and Glasgow market picking up.
“This of use who lived through the market correction of the late 1980s will remember that every commodity is subject to market fluctuations. You have to gear your business accordingly. Diversification is a good thing
“Equally our cost base is significantly less than a ‘Big Four’ accounting firm. We believe our lower cost base will be a competitive advantage serving international business based in Aberdeen. Especially now we are part of PKF.”
Mr Manson added: “Following the Referendum and the Smith Commission report, it will be a time of important change as more powers are devolved to Scotland. At a time when the economic recovery is gaining traction, it’s more important than ever that we are able to efficiently and effectively guide our clients through the fiscal and other changes which will follow.”