M&A drives Johnston Carmichael turnover

SCOTS accountancy firm Johnston Carmichael has reported a 4 per cent rise in revenues as it eyes further merger and acquisition (M&A) opportunities.

The firm, which in 2009 joined forces with Edinburgh rival Duncan Young, saw turnover climb to 27.9 million in the year to 31 May from 26.9m.

Chief executive Sandy Manson declined to disclose profit figures but warned that the economic landscape remains "uncertain". He added: "Clearly generating profit is very difficult in this market."

Despite the market conditions, Manson said that there had been an increase in transaction work as Scotland's M&A market begins to "thaw".

He said: "The dam is not about to burst but we are beginning to see transaction work pick up.

"Vendors and buyers are finding between themselves more innovative ways to funds deals."

But bank lending remained a major hurdle several years on from the financial crisis, he said.

"The biggest impact on the market is the availability of bank credit and the rings some businesses have to jump through to gain credit - that is still a challenge."

Johnston Carmichael also experienced good growth in its financial services and renewable energy businesses but Manson said the greatest driver last year was its the core accountancy, auditing and tax planning operation.

As Scotland's largest stand-alone accountancy firm out with the so-called "big four", Manson said there were opportunities for Johnston Carmichael to expand both organically and through potential mergers.

Although he said no immediate deals were on the table, "discussions" were taking place with potential partners.

He added: "There will be rationalisation within the Scottish accountancy sector. I dare say there will be a degree of merger growth (at Johnston Carmichael]."