AN accountancy firm says it expects yearly revenues to hit £300m as it benefits from a takeover.

Baker Tilly, which has offices in Newcastle and Sunderland, said turnover has lifted 47 per cent to £245m.

The increase comes after the company acquired RSM Tenon, formerly in Sunderland, last year.

In a report, bosses said turnover hit £245m for the year ending 31 March 2014, adding they expect annual revenues to hit £300m.

The firm also said it had seen double digit revenue growth in all service lines, with tax and advisory up 41 per cent to £107m, audit and assurance rising 23 per cent to £66m, and restructuring and recovery lifting 14 per cent to £27m.

It added pre-tax profits were up 112 per cent to £11.9m, with a £32m loan used to finance the Tenon deal fully re-paid in 15 months.

Laurence Longe, Baker Tilly managing director, said: “This has been a transformational year for the group.

“This achievement was only made possible by the huge contribution and commitment shown by partners and staff from both firms, who largely succeeded in providing a business as usual environment for our clients while a full merger and integration process was under way.

“The outlook for the current year looks promising, with group results on budget for the first eight months and signs of growth throughout our service lines.

“It has been a very successful year for the group, and the Tenon transaction has effectively consolidated the mid-tier accountancy firm market.

“We look forward to the future with considerable optimism.”