E&Y revenues grow 8% in ‘toughest market’

Link: M&A partner cull at Ernst & Young

The firm said that after a poor 2002, it had seen average profit per partner increase by 26% to £478,000.

Low business confidence and regulatory and market reactions to the crisis of confidence in the US corporate system had held back further increases, the firm said.

Business assurance increased by 8% boosted by audit wins of former Andersen clients and improved audit pricing. Taxation services achieved growth of 2% while transaction advisory services enjoyed 17% growth, helped by ‘a very strong performance’ from the corporate restructuring group, which was boosted by the addition of the Andersen practice.

Average profit per partner increased by 26% from £378,000 to £478,000. However the 2002 figure was significantly depressed – average profit per partner for 2000/01 had been £449,000.

Despite a global revenue rise of 29.8%, UK chairman Nick Land said that the UK firm was one of the best performing practices in ‘mature markets’.

He added: ‘Our results are a good achievement in what has been the toughest market I can recall. Low levels of discretionary spend, few corporate transactions and a significant reduction in non-audit fees from audit clients created an uncertain operating environment.’

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