Revenue growth slows at Deloittes
Big Five firm Deloitte Touche Tohmatsu today announced global annual revenues of $11.2bn (£7.52bn) - an increase of 14.1% for the fiscal year, but less than the 21% rise recorded in the previous financial year.
The firm claimed the growth is as a result of an 11% increase in consulting revenues and a 15.4% rise from the accountancy division. It said the growth was in line with fellow big five rivals Arthur Andersen and Ernst & Young.
While acknowledging the deceleration in growth, the firm said comparisons with last year were difficult given that it changed its fiscal year-end from 31 May to 31 August and had disposed of operations that were not consistent with its business strategy.
The results marked the seventh successive year global revenues have grown. Global chief executive officer James E Copeland Jr, said: ‘We’re poised to become the second largest firm in the Big Five with excellent prospects of ultimately being the largest firm.’
He added that the firm’s strong financial performance was also influenced by its commitment to technology and e-business opportunities, saying ‘the potential of e-business is vast. Our strong results and prominent recognition show that we’re leading the profession in e-business.’
Copeland remained highly critical of the US Securities & Exchange Commission stance on auditor independence, believing instead that keeping the firm’s auditing and consulting divisions united was a ‘valuable synergy’ and ultimately made it more competitive. He defended Deloittes’ determination to remain ‘a united, multidisciplinary organisation’.
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