E&Y revenue growth outstrips competitors
Ernst & Young has announced a fee income increase of 4% to £754.4m for the financial year end June 30 2002.
Link: PwC global fees edge towards £9bn
and Top 50 table
All service lines experienced a revenue increase, but corporate finance saw the largest growth with an 11% rise. Much of this, the firm says, is down to its corporate restructuring practice where ten former Andersen partners and 170 staff have been accommodated.
The figures outstrip the global results of PricewaterhouseCoopers and Deloitte & Touche, both of which recorded growth rates of around 1%. Deloitte experienced a UK growth rate of 15.7% for the year end May 31 2002, while PwC do not publish.
Nick Land, Ernst & Young chairman said that while he wasn’t ‘going to stand on the rooftop and shout yaboo’ he was happy to have ‘beaten the market’.
‘Corporate activity has reduced from around 20% peak to a flat growth market,’ he said. ‘Even to stand still you have to go out there and win a lot of work.’
He also conceded that if the Anderson clients were stripped out of the equation, the results would be flat or the firm would have recorded ‘small growth.’
As for the future, Land said he is not expecting an upturn in this financial year and said the firm ‘would be cautious for next year as well’.