PracticeAccounting FirmsBDO revenues rise 10% to £317m

BDO revenues rise 10% to £317m

Earnings at BDO Stoy Hayward climb 10% to £317m, but profits only up 4% to £72.5m

A heavy programme of investment saw profits at BDO Stoy Hayward grow by only
4% to £72.5m even though revenues showed double-digit growth (10%) to reach
£317m for 2006/2007.

‘There is no point in asking for barriers in the market to be broken down and
then cut investment,’ said BDO managing partner Jeremy Newman. ‘If we have to we
will continue to squeeze profits to continue investment.’

Newman said the firm had made significant investment in people and had
upgraded IT infrastructure to handle more sophisticated work and enable
international working.

The firm has also invested in new office space in Leeds, Cambridge,
Manchester, Birmingham and Scotland and will be moving into new premises on
Baker Street in London next year.

The forensic services and corporate finance service lines showed the most
impressive growth over the year, rising by 21% and 19% respectively. Assurance
revenues only rose by 8%.

Newman said progress in breaking into the FTSE 350 audit market had been
‘frustrating’.

‘We are winning more non-audit work than audit work,’ he said. ‘We are doing
more tenders, but sometimes I wonder if we are just invited to tender as the
obligatory mid-tier firm.’

Further reading:

Read
the full results announcement here

Read Newman’s
blog

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