PracticeAccounting FirmsDeloitte reports revenue growth of 11%

Deloitte reports revenue growth of 11%

Despite revenue growth across multiple sectors, distributable profit for 2017 was flat year on year at £608m

Deloitte reports revenue growth of 11%

Deloitte have revealed revenue growth of 11.2% to £3.4bn in their financial results for the year ended 31 May 2017.

This is up £340m from last year, with revenue increasing from £3.04bn to £3.4bn. This is the second consecutive year of double-digit growth for the Big Four firm.

Despite revenue growth across multiple sectors, distributable profit for 2017 was flat year on year at £608m. The report also revealed average profit per equity partner was £865,000.

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.”

Looking at different sectors, double-digit revenue growth was seen in the firm’s consulting business (13.6% to £859m) and audit and risk advisory services (13.1% to £932m).

Sproul added: “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% 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.”

Meanwhile, tax services revenue grew to £691m by 5.7% and financial advisory services revenue grew to £459m by 1.5% on a like by like basis.

“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% 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 and Healthcare.”

In the past year the Big Four firm has demonstrated a commitment to technological transformation through several alliances with big partners, namely Apple and McLaren Applied Technologies and with acquisitions of Market Gravity and Swedish creative agency Acne.

As well as investing in technological innovation, Deloitte has also continued to invest in people – recruiting more than 3,500 people in the last financial year. The firm now employs roughly 6,000 people across 22 regional offices.

In the UK, Deloitte promoted 57 new partners and recruited a further 30. The firm reported that 19% of its partners in the UK are now female, up from 14% in 2014. The firm has set a target to increase this figure to 25% by 2020, following reports of the firm’s gender pay gap standing at 18.2%.

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