A TAX and audit firm helping to drive forward a Formula One team has revealed increased revenues.

KPMG, which has an office in Newcastle, said revenues lifted five per cent to £1.9bn for the year ending September 30.

It revealed its advisory services division increased its contribution to profits by five per cent to £324m, with its audit arm delivering £181m.

However, overall pre-tax profits were down nine per cent as the company invested in staff, its services and offices.

Its Northern region recorded revenues of £200m.

The firm works with McLaren Group, which oversees the McLaren Formula One team, including driver Jenson Button, mixing its audit and advisory skills with McLaren’s technology work.

Earlier this month, KPMG also helped medicine supplier Quantum Pharma, in Burnopfield, County Durham, with a £106m Alternative Investment Market (AIM) flotation.

Mick Thompson, KPMG Newcastle office senior partner, said: “The year was another period of expansion in the North-East, enabling more investment in people, including key promotions across our audit, tax and advisory practices.

“Our listed clients, including tender success stories at Grainger and Greggs, also remain key to our business and we continue to provide work to public sector clients across health, education, social housing and local government.”

“We’ve also had a stunning start to our new financial year as an advisor to the flotation of Quantum Pharma, which was 2014’s largest AIM flotation in the pharmaceutical sector.”

A report added the firm’s average partner pay had remained flat at £715,000 in the period, with its employee bonus pool increasing to £80m.