After months of speculation, Pearce told Accountancy Age that the firm was looking to 2008 for the flotation. ‘We are committed to a public listing,’ said Pearce.

But the timing of going public could be affected by the condition of the markets, or the firm’s performance. ‘If it’s all good, we would do it sooner rather than later [in 2008], but it wouldn’t worry us if we wait,’ said Pearce.

A listing would help the firm raise its profile to potential customers and staff, Pearce added.

Pearce made his comments as the group posted £25.3m profits for the year, its highest ever figure. The group’s profits before tax grew by 39% on 2006, and fee income leapt by 13.7% to £150.5m.

The group also defended its foray into the controversial litigation funding market, saying that it would not help fund ‘speculative’ litigation. S &W will provide funding for claims around liquidations, where liquidators would normally struggle to bankroll litigation claims on behalf of creditors.

Auditors are wary of the new type of legal case funding, since they are often regarded as deep pockets by liquidators.

Stephen Cork, head of restructuring and recovery, said the group could potentially help finance claims against other accountants, but claims against firms were always a possibility during liquidations.