ONE of the region's largest law firms increased its turnover from £6.3m to more than £7m last year.

Crutes, which has offices in Newcastle, Teesside and Carlisle, expects turnover to remain steady this year as it concentrates on consolidation.

Helen Ager, managing partner, said: "We have seen radical change over the past year and we feel, having gone through all of that over a very successful year, we need to remain steady this year to reap the benefits.

"That isn't to say we won't be aiming to grow parts of our business this year."

She said projected turnover for the financial year to March 2007 was expected to be about £7.1m.

Crutes' private client business has grown the most, increasing by 120 per cent in the past two years. It now makes up 23 per cent of the firm's business.

Business services account for up to 25 per cent of business, dispute resolution 15 per cent, insurance litigation 11 per cent and public services 26 per cent.

Historically, Crutes specialised mainly in insurance litigation, but has extended its areas of operation recently.

Ms Ager said the private client work had grown because many other firms started to move away from that type of work. Crutes appointed Stuart Hamilton as private client partner and that section of the business had gone from strength to strength since his appointment, said Ms Ager.

Another major growth area was commercial property, part of the firm's business services department, which saw growth of 46 per cent.

Ms Ager said that was in part due to a boom in the North-East office sectors.

Last year, Crutes opened offices in University Boulevard, Stockton, after merging with Middlesbrough firm Dobermans Horsman.

It also merged with Carlisle firm Mounseys.

Two years ago, Crutes moved its Newcastle offices into the former One NorthEast premises next to the Civic Centre.

The firm also took on six salaried partners last year.

Crutes employs 193 people across the three offices, including 22 partners.