Independent accountancy firm Johnston Carmichael has seen its revenue increase to beyond £40 million for the first time.

The firm’s latest figures showed its turnover grew by three per cent to £40.8 million in the year ending May 2016. Net profit before members’ remuneration rose to £11.61 million, up from £11.06 million in the previous year.

Sandy Manson, CEO of Johnston Carmichael, said the figures showed that the firm’s “expansion beyond the north-east was absolutely right” and that its expansion into Glasgow and Edinburgh had “given us a much broader geographical platform to grow and develop the business”.

The firm compensated for a drop-off in corporate finance work last year with a pick-up in restructuring activity and saw continued growth of its wealth advisory arm, which saw its revenue increase by 13 per cent to £3.9 million last year.

Mr Manson told The Herald: “With all the turbulence and uncertainty in the market, I think investors are rightly seeking more financial advice, to protect and grow their savings.

“What we have seen in the northeast of Scotland, despite all the turbulence, is individuals are seeking value and advice on what to do to protect and grow their savings. That has been a growing part of our business.”

Mr Manson also said the business faced challenges in 2017 due to the impact of Brexit and the fall in sterling on the cost of new technology.

He said: “In our business, the direct cost we are seeing is the IT cost – IT suppliers who are operating in dollar denominated worlds, and many of them are, are just looking to push up prices.

“That I think in 2017 is going to be a factor – we are going to see inflation creeping up and that’s going to be a challenge for us in an economy that is very fragile.”

He added: “We cannot do without that IT spend and… we have to do it to become more efficient. That is the way we need to go to compete.”