KEPPIE DESIGN, the Glasgow architectural practice that included Charles Rennie Mackintosh among its early partners, has announced record annual results.

Revenue increased to £13 million in the 12 months to the end of July, up 24% from a year ago.

"We expect to increase growth again this year - although probably not quite so dramatically," Keppie chairman Peter Scott said. He forecast growth of between 10% and 15%.

Keppie, which was founded 153 years ago, has expanded rapidly over the past decade.

Last year, the firm hired 80 new members of staff, bringing the total number of employees to about 250. Ten years ago, the company had a head count of just 40. Scott expects to hire a further 25 people this year.

The firm last year opened offices in Manchester and Belfast, adding to existing offices in Glasgow, Edinburgh, Perth and Inverness.

In the past few years, Keppie has positioned itself to benefit from government spending on public-private partnerships (PPPs) on healthcare and education.

Keppie derives about 60% of its revenues from building hospitals and schools. Since 2000, the firm has completed 48 schools, with a capital value of £500m.

Scott said that he expects the flow of PPP work to continue "because it has been shown to be a very effective way of procuring public buildings to programme and to budget". However, he added there may be a period of "settling down" as the new administration at Holyrood and the new leadership at Westminster make tweaks to spending programmes.

Keppie is involved in the regeneration of the former Ravenscraig steelworks site and Scott is confident that this will provide the firm with the expertise to win similar contracts to develop brownfield sites around Manchester and Birmingham.

"We see good growth in middle England," Scott said.

A highlight of the year for the firm was scooping the sustainable building of the year award for Great Glen House, the headquarters designed for Scottish Natural Heritage in Inverness.

The building scored the highest environmental assessment rating - 84% - ever to be awarded by the Building Research Establishment (BRE), the UK authority on sustainable construction and development. It also received the distinction of being BRE's building of the year for 2006.

"The building really raised the bar for environmental sustainability," Scott said.

Keppie also aims to win more work internationally this year and has partnerships in place with consultancy Davis Langdon and John Laing Social Infrastructure who share his ambition to work overseas.

David Ross, director for design and professional services, explained that British standards for PFI/PPP procurement was being considered for adoption in countries in Eastern Europe and Canada.

Ross said: "We have exportable expertise, especially in public-sector work, and there are a number of opportunities we have responded to in the healthcare sector. Canada, for healthcare, is probably our principle target."

Keppie also expects to get involved in projects in North Africa and around the Mediterranean rim. These are more likely to be "mixed use" developments and Keppie aims to get involved in masterplanning - as they are at Ravenscraig - rather than focusing on designs for specific buildings.