PARTNER profits are down at Deloitte, following a mixture of modest growth and investment at the Big Four firm.
Deloitte posted revenues of £2.55bn for the year ending 31 May 2014, up 1.4% on the previous year – however a sizeable chunk of that growth came from the performance of its Swiss business. Profit distributable to partners was £554m, compared to £571m in 2013.
The average profit earned by each partner in the year, after providing for pensions and annuities payable to retired partners, was £750,000 compared with £772,000.
The firm recruited 72 new partners during the period, with another 3,500 hired including 1,500 entry-level positions. Total staff numbers stand close to 14,000.
Deloitte chief executive and senior partner David Sproul said that better economic conditions and improved client sentiment should lead to “significant improvements” across its markets.
“Growth has increased in the first quarter of the new financial year and we are seeing a renewed confidence and optimism in our clients to make investment decisions,” said Sproul. “The global ambition of our clients and our people is creating opportunities for the firm to increase revenue internationally.”
However, Sproul warned that political uncertainty could slow up business activity.
Corporate finance delivered the biggest growth in 2014, up 4.7% to £424m, while tax and consulting were relatively static. Audit fees fell to £706m from £719m. Its Swiss practice increased revenues to £236m, from £209m (11% in local currency terms to CHF346m from CHF313m).
The firm opened its ‘digital’ office in Clerkenwell in June, while more tech and risk-based roles were created in Belfast and Cardiff. It is also looking to expand its CFO programme to include CIOs and chief procurement officers.
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The select committee heard that GT had not met up with the BHS pension scheme advisers or trustees, but had done so with Deloitte, Arcadia’s pension advisers