PracticeAccounting FirmsBDO reports revenue growth of 5.7%

BDO reports revenue growth of 5.7%

BDO has reported jumps in revenue and profit in the past year, in its fifth consecutive year of growth

BDO reports revenue growth of 5.7%

Top 10 firm BDO has reported jumps in revenue and profit in the past year, in its fifth consecutive year of growth.

Underlying revenues have seen an increase of 5.7% to £428m, while profits have increased by 11% to £87.6m. In average profits per equity partner have grown 22% to £454,000.

The firm reports overall growth despite a climate of uncertainty, and credits this to its resilient clients and targeted investments.

Growth across sectors

BDO has seen growth across the business. Audit continues to be the largest part of the business, and has seen revenues grow by 7.4% to £135.2m in the past year. The firm also holds the title of number one auditor for AIM companies.

The firm’s tax services has reported a 7.4% increase in revenues to £135.2m, continuing to grow its corporate client base while also focussing on compliance and regulatory requirements.

It’s advisory revenues also saw growth, increasing 4.5% to £141.9m, with its corporate finance team reporting deal activity with a combined value of almost £6bn, despite Brexit uncertainty.

Investments

Managing partner Paul Eagland commented: “The last year has been one of great success against a backdrop of change for the UK economy. Like many firms, we can say we’ve been investing heavily but, importantly, we’ve been investing in targeted areas that help our people and clients succeed.”

These investments have included physical infrastructure, expanding to new offices in Leeds and Reading as well as undergoing an agile-working programme at Baker Street, London, its headquarters.

Digital transformation has also been central to the firm’s growth, having over 20 project plans in progress under this umbrella across the business.

The firm’s BDODrive Solutions, which employs the use of cloud accounting, has grown by 40% in the past year. The offering allows advisers to be directly plugged into clients’ bank accounts and systems, thus being able to quickly produce accounting and financial information and advise on a real-time basis.

Another area of investment for the firm has been into the “next generation of audit software”, into which BDO has globally invested $70m USD. All BDO firms globally use this software, which ensures a “a really standard quality methodology everywhere around the world.”

BDO has also made investments into cybersecurity, with the UK offices collaborating with its US and Israeli branches to provide secure services.

Eagland said the key is: “Using technology not for technology’s sake, but to enhance the intelligent client service offering.”

People

Eagland explained that although technology continues to play an important role, the firm is “and always will be – a people-powered business.”

BDO has continued to invest in its people, appointing 25 new partners and internally promoting 15 in the past year.  A total of 1,175 people have been promoted across the firm, a third of its total UK workforce. The firm has also recruited another 280 trainees into the business.

Year ahead

Looking to the year ahead, Eagland said: “Targeted investments that help us do business better, make our clients’ lives easier and help our people achieve their potential will continue to be our focus.”

Eagland explained the company will continue investing in infrastructure – both in terms of real estate as well as software and equipment.

In terms of service line, the firm also intends make investments around cybersecurity, offerings, risk assurance services, M&A advisory and finally investing in the private equity sector of the markets.

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