Recovery work ups E&Y fees.
Ernst & Young released its first results as a limited liability partnership this week and recorded a 15% growth in fee income for the year to June 2001.
The firm brought in fee income for its continuing business of #722.2m.
The corporate finance division showed increases of 20% in spite of the downturn. UK chairman Nick Land said the firm had been hit by the US slowdown from the turn of the year but its corporate finance activity had been buoyed by recovery work in the second half.
Land said that although the downturn was likely to be more long lasting and deeper than anticipated, he was encouraged to see a recovery culture taking hold. ‘Banks’ attitudes do appear to have changed. I think that they are more reluctant to put businesses into receivership and more focussed along with the rest of the creditors on how to keep businesses going.
I think we are doing a lot more to help corporates, on cashflow challenges and debt-restructuring, for example.’
The firm’s operating profit before exceptional items was up 14% to #185.7m and average profits per partner rose by 6% to #449,000.