THE UK arm of international accountant KPMG, which employs 120 staff in Southampton, has recorded annual operating profits of £247m.

The figure represents an increase of six per cent on 2003, when £233m was made.

Tony Cottam, senior partner at KPMG's south coast office in Southampton, said: "In the south, local trading reflects the UK figures and the past six months have been particularly strong. We are seeing our clients being more active and deriving real value for their businesses from the depth of skills and experience our south coast team can offer."