Johnston Carmichael Promotions Signal UK Mid-Market Advisory Shift
9h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
johnston-carmichaeluk-accountancy
Fazen Markets Editorial Desk
Collective editorial team · methodology
Trades XAUUSD 24/5 on autopilot. Verified Myfxbook performance. Free forever.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. Vortex HFT is informational software — not investment advice. Past performance does not guarantee future results.
Johnston Carmichael announced 14 new appointments and promotions across its UK offices on 15 June 2026. The Scottish accountancy and business advisory firm elevated seven professionals to partner, significantly expanding its senior leadership capacity for client services. The move represents the firm's largest single cohort of partner promotions since its 2019 merger with Mazars' Scottish practice, which added 25 partners. The promotions are concentrated in growth sectors, including digital transformation and ESG advisory services.
The UK's mid-market professional services sector is consolidating. The last major consolidation wave occurred in 2021-2023, with deals like BDO's acquisition of Moore Kingston Smith adding over 50 partners. This reshuffle occurs amid sustained high interest rates, with the Bank of England base rate holding at 5.25% since August 2023, pressuring corporate clients' budgets. The catalyst is a structural demand shift. Mid-market firms now require integrated advice spanning AI implementation, carbon accounting, and regulatory compliance, not just traditional audit and tax. Advisory revenue at top-20 UK firms grew 22% year-over-year in 2025, outpacing audit growth of 4%.
Regulatory changes are accelerating this pivot. The UK's new Sustainability Disclosure Standards, mandating detailed climate reporting for large companies from 2027, create immediate advisory demand. Simultaneously, the economic environment has made cost optimization and operational efficiency services critical for clients. This dual pressure from regulation and macroeconomics forces firms like Johnston Carmichael to deepen specialist expertise at the partner level. The promotions are a direct response to these client needs, positioning the firm to capture higher-margin consulting work as audit becomes increasingly commoditized.
The 14 appointments include seven new partners, four associate directors, and three senior managers. The partner promotions alone constitute an approximate 15% expansion of the firm's partner cohort, which now numbers around 70. This growth rate doubles the UK accounting sector's average partner growth of 7% annually. Johnston Carmichael's headcount exceeds 1,000 people across 12 offices, with a reported fee income of £86 million for the 2024 financial year. The firm's strategic focus is evident in the promotion mix: three of the seven new partners specialize in technology and digital advisory.
| Role | Previous Headcount (2023) | Current Headcount (Post-Promotion) | Change (%) |
|---|
| Partner-Level Tech Advisors | 8 | 11 | +37.5%
| ESG & Sustainability Leads | 5 | 7 | +40%
Peer comparisons show a similar strategic emphasis. BDO UK increased its technology consulting partners by 28% in 2025, while Grant Thornton grew its ESG advisory headcount by 35%. The investment comes as advisory fee rates for technology and sustainability work command a 40-60% premium over standard compliance work. For context, the FTSE 350 Index is down 2.3% year-to-date, underscoring the pressure on corporate profits that drives demand for these efficiency-focused services.
This partner-level investment signals a broader sector trend where mid-cap consultancies are taking share from larger, less agile competitors. Publicly listed professional service firms with strong UK mid-market exposure, like FTSE 250 constituent RSM UK (backed by RSM International), could see positive sentiment. Private equity activity in the sector may also increase, as demonstrated by HgCapital's 2025 investment in Mazars' German arm, valuing it at €1.4 billion. Johnston Carmichael's deep Scottish network provides a defensive moat, as regional client loyalty in Scotland often exceeds national averages.
A key risk is execution. Rapid partner expansion can dilute firm culture and lead to internal competition for client mandates, potentially eroding service quality. The counter-argument is that a broader partner base diversifies revenue risk and increases cross-selling opportunities. Market positioning shows institutional investors are increasingly long on niche advisory specialists. Flow data from 2026 Q1 indicates venture capital funding for B2B fintech and regulatory tech (RegTech) platforms, which partner with firms like Johnston Carmichael, rose by 18%.
Two immediate catalysts will test the new structure's effectiveness. The firm's FY2026 financial results, due for publication in Q4 2026, will reveal if the expanded partner team has translated into revenue per partner growth above the sector average of £1.2 million. Second, the UK's Autumn Statement on 5 November 2026 may introduce new tax incentives for digital investment or sustainability, creating immediate advisory demand. A supportive policy announcement would validate the firm's strategic hiring.
Key levels to monitor include the fee income threshold of £100 million, a psychological milestone for UK accountancy firms. Crossing this level typically triggers greater investment from external capital and increases merger appeal. The firm's ability to retain its promoted talent for over 24 months will be a critical indicator of internal stability, as partner churn rates above 10% annually signal integration problems.
The promotions intensify competition for mid-market clients, particularly in Scotland and Northern England. Firms like Azets and Anderson Anderson & Brown must now match deeper specialist benches or risk losing high-margin advisory work. This could trigger a regional wage war for top talent, increasing operational costs across the sector by an estimated 5-8% over the next 18 months.
A 15% increase in partners in a single cycle is aggressive and indicates strong underlying financial performance or significant external investment. Historically, similar expansions at firms like Smith & Williamson in 2018 preceded periods of 20%+ revenue growth. It also suggests the firm's equity partnership model is healthy enough to support significant new profit-sharing, which is a positive signal of internal confidence.
Major promotion cycles often coincide with economic recoveries or regulatory shifts. The last comparable wave was in 2021 post-pandemic, focused on restructuring and forensic accounting. The current cycle is distinct for its focus on future-facing services like AI and ESG. This suggests firms are betting on a long-term structural change in client demand rather than a cyclical uptick.
Johnston Carmichael's aggressive partner promotions are a tactical bet on high-growth advisory services reshaping the UK mid-market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
Vortex HFT is our free MT4/MT5 Expert Advisor. Verified Myfxbook performance. No subscription. No fees. Trades 24/5.
Trade 800+ global stocks & ETFs
Start TradingSponsored
Open a demo account in 30 seconds. No deposit required.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.