Deloitte records double-digit revenue growth
Accountants Deloitte hoisted global revenues 11.2 per cent to £3.4 billion in the year ended May 31, with double digit growth reported in the UK consulting and audit and risk advisory business.
It was the seventh consecutive year of revenue growth and the second consecutive year of double-digit growth.
Consulting revenue grew by 13.6 per cent to £859 million, Audit and Risk Advisory by 13.1 per cent to £932m, Tax by 5.7 per cent to £691m and Financial Advisory by 1.5 per cent to £459m.
David Sproul, senior partner and chief executive of Deloitte, said: “This is a good performance in a complex and uncertain market which has been impacted by Brexit and the elections in the US and UK.
“Our Consulting and Audit and Risk Advisory businesses both grew by double-digits. Consulting has continued to see significant demand for technology-enabled business transformation and there has been further strong growth in Deloitte Digital, our creative digital consultancy.
“The firm won a series of major audits this year, including BAE Systems, BP, Centrica and GlaxoSmithKline which has taken our share of the FTSE 100 audit market to 26 per cent and we saw further success in the FTSE 250, private and international markets. Our Risk Advisory business has seen increasing demand for supplier risk, cyber and regulatory advice.
“Growth in tax was driven by the global tax reset, Brexit and the possibility of US tax reform, alongside continued demand for technology-enabled compliance services.
“Financial Advisory advised on 87 M & A deals last year with a total value of more than £7bn and we advised on 38 per cent of main market IPOs. We also saw strong growth in forensic driven by a number of large investigations and regulatory remediation work across Europe. From an industry perspective, growth was notable in consumer and industrial products and life sciences & healthcare.
“We have continued to invest through this year of uncertainty and that investment in our people, in winning market share and in building market leading solutions has resulted in flat distributable profits.”
The firm recruited more than 3,500 people in the last financial year including more than 1,600 school leavers, interns and graduates. Regionally, Deloitte now employs nearly 6,000 people across 22 offices and this year the South East offices have expanded with a major refurbishment in Southampton and office moves in both Gatwick and Cambridge.
Deloitte promoted more than 5,000 people this year as it seeks to retain its brightest talent, while in the UK, the firm promoted 57 new partners and recruited a further 30.
The proportion of female partners in the UK now stands at 19 per cent, up from 14 per cent in 2014. Deloitte has a target that 25 per cent of partners will be women by 2020.
In East Anglia the Deloitte teams have spent time mentoring in secondary schools and 6th form colleges and have been involved with the Dragon’s Apprentice competition, over 400 hours of volunteering which contribute to over 1,000 hours for the wider South East region.
Sproul added: “Our priority is to ensure our talent pool is diverse and reflects the make-up of today’s society and we are proud of the progress made so far.”
Paul Schofield, Deloitte practice senior partner for Cambridge and St Albans, said: “Our regional markets are home to some of the UK’s most successful and well-known businesses – many of whom we are proud to have as Deloitte clients.
“We are dedicated to making our South East business the best it possibly can be for our clients, our people and society.”
• PHOTOGRAPH SHOWS: David Sproul