Coopers unveils 6% fee income growth
Coopers & Lybrand, current Big Six leader, grew gross fee income by 6% for the year 1995-96 to # 701m, according to figures released last week.
Every division except insolvency enjoyed the general economic upturn, with business assurance (which includes audit) up 7%, corporate finance 12%, management consulting 10% and tax and human resource advice 6%. Insolvency fees fell by 11%, but market share increased, says the firm.
In a market described by chairman Peter Smith as ‘intensely competitive’, Coopers’ figures show growth in excess of the 4%-plus achieved by Group A firms reporting in June. But with talk of Andersens and other Big Six firms achieving double-digit growth, Coopers may find itself toppled from top slot when Andersens reports in mid-October.
A rise of 15% in gross fee income would give Andersens the UK leadership.
Coopers’ use of gross fee income as the lead performance indicator is an innovation for the firm. It, and others, normally report net earnings, which do not include expenses invoiced in respect of completed work, excluding VAT. Fees reported on the old basis were # 619m, a rise of 8%.
With partners at the firm falling by 2.1% from 607 to 594, fees per partner broke through the million-plus barrier to # 1,042,087 on a net earnings basis or # 1,180,134 on a gross basis. Of the two other firms already past this mark, Andersens last year achieved # 1,386,900 and Ernst & Young # 1,039,400.
Chargeable staff rose 5.4% from 6,268 to 6,609. Support staff fell 4.8% from 2,450 to 2,330.