Growth due to diversification
Revenue milestone for Johnston Carmichael
In its 80th year of business, the firm said the 3% growth was a result of its ability to diversify in challenging markets.
The uplift in income from £39.6m to £40.8m produced net profit before members’ remuneration up slightly from £11.06m to £11.61m.
Johnston Carmichael Wealth, the firm’s wealth advisory business, achieved a 13% increase in turnover, attributed to continued reform in the financial services and pensions market which has offered greater opportunities to support clients through change.
Chief Executive Sandy Manson said: “It’s very encouraging to report steady progress on a number of fronts despite challenging trading conditions, especially in the North East of Scotland where the lower oil price has resulted in a significant market correction.
“Our decision to expand across the central belt over ten years ago has allowed our business to better deal with the regional impact of economic cycles such as we continue to see in the North East.
“Our teams throughout Scotland work closely with our clients to really understand their businesses and the opportunities and challenges they face, and in this way we are well-placed to support them as they pursue new avenues for growth.”
The firm, which employs almost 700 staff in 11 offices, has grown its international work through its membership of PKF – a family of legally independent member firms operating in 150 countries.
Major hires across the year have included a new team of specialists in infrastructure and renewables, as well as expanding the firm’s capability in consultancy, internal audit, R&D and capital allowances.
The business has also made significant investment in leading edge technologies to deliver these services, including the use of data analytics in audit work and cloud technology in its SME-focused offering.
Mr Manson added: “Recruiting experienced hires and making internal promotions across our key business lines, while attracting high-calibre students onto our graduate training programme, ensures our succession plan is also in good shape and that makes us excited about the potential of our business for the future.
“We are very encouraged with the progress the business has made in growing our brand and capability across all our markets however there is so much more we want to achieve as we embrace the opportunities brought about by factors such as the pace of change in technology.
“Having a strong strategic plan in place is key to our continued growth and in the year ahead we will continue to invest and innovate in all areas of our business to ensure we continue to play a leading role in the sector and contribute to Scotland’s economy and communities.”