PracticeAccounting FirmsDeloitte revenues and profit decline

Deloitte revenues and profit decline

Deloitte revenues fall but CEO and senior partner John Connolly believes the firm is in a strong position

Deloitte UK’s revenues dropped £16m in the last year, according to its annual
report.

The Big Four firm reported revenues of £1.953bn, a decline of £16m to the
year end 31 May 2010. The average partner payout declined to £873,000 from
£883,000. Profits fell £18m compared with last year.

Revenues fell across audit, tax and consulting: 2.9%; 2.3; and 4%
respectively. CEO and senior partner John Connolly said the volume of business
hours grew but pricing reduced.

Connolly was paid £5.1m, compared to £5.2m a year earlier. Members of its
19-strong executive group were paid £39m in total, which includes Connolly’s
profit share.

He remained upbeat about the results, claiming revenues in corporate finance
grew 10.6% and the firm will continue to “gain market share”.

He said the firm was able to achieve this as it expects competitors’ revenues
to have dropped more than theirs.

“In these markets no-one is going to have a significantly different level
their competitors,” he added.

Previously Connolly claimed in 2006 he would grow the firm’s revenues to £2bn
in two years – which he achieved in 2008.

He said the firm will “easily” get back to £2bn before he leaves, “we’re not
far off now”.

Deloitte acquired a range of businesses in the last 12 months to grow the
firm, including real estate advisory firm Drivers Jonas, sustainability
consultancy dCarbon8, and risk and security business IM Global.

“Our firm is in great shape to support our clients in the continuing complex
environment and to capture growth opportunities as we continue to gain market
share,” said Connolly.

A statement from the company also highlighted that Deloitte had made a £1m
contribution to the Disaster Emergency Committee’s Pakistan Floods Appeal, which
is believed to be the single largest UK corporate donation.

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