The banking team at South Yorkshire law firm DLA Piper report strong corporate activity over the first half of the year, much of which is locally generated.

Since January the banking team, led by partner Tim Littler, has been involved in transactions ranging in value from £1m to £75m.

They have advised on deals including the £5.5 million management buyout of Sheffield-based Cloud Electronics, one of the UK's leading suppliers of high-tech audio equipment, and helped steer through the £9.4 million partial management buyout of the AMCO Corporation plc. Both deals were funded by the Royal Bank of Scotland.

Tim Littler, partner in the Finance and Projects Group, said: "While the national media is currently full of economic doom and gloom stories, particularly relating to the lack of availability of finance and its effect on the property and housebuilding sectors, we have had a very busy period, mainly with local corporate deals reflecting a healthy level of activity in the regional market.

"I think this reflects the fact that there is still a healthy manufacturing base in Sheffield. A lot of companies locally went to the wall in the 1980s and early 1990s and the ones that are left are lean, efficient and well run with strong order books from exploiting international markets.

"The marketplace may be challenging but these companies still need to borrow money for general expansion or require funding for trading opportunities or making acquisitions."

DLA Piper's Sheffield office has just been named Dealmaking Firm of the Year and Corporate Law Firm of the Year at the South Yorkshire Dealmakers Dinner, which recognises the achievements of key players in the region's financial and legal community.

Other financial advisers in the region stress that South Yorkshire is well-placed to weather the current economic storm. Chris Sellars, corporate finance partner at leading Sheffield independent accountants Hart Shaw, said: "Some of the traditional businesses in Sheffield, aligned to the aerospace, oil and chemical industries, are driving the local economy.

"These companies are performing very well and have long order books on the back of considered and significant investment in technology and in a highly skilled workforce."

Gary Douglas, relationship director, corporate banking at RBS added: "Undoubtedly economic conditions are tighter this year but amidst some of the more gloomier headlines, deals and transactions continue to be completed locally. At such times it is important to stay close to your customers."