PracticeAccounting FirmsDeloitte partner profits fall as modest growth posted

Deloitte partner profits fall as modest growth posted

Improved economy should see better growth in 2014/15, says senior Deloitte partner David Sproul

Deloitte partner profits fall as modest growth posted

PARTNER profits are down at Deloitte, following a mixture of modest growth and investment at the Big Four firm.

Deloitte posted revenues of £2.55bn for the year ending 31 May 2014, up 1.4% on the previous year – however a sizeable chunk of that growth came from the performance of its Swiss business. Profit distributable to partners was £554m, compared to £571m in 2013.

The average profit earned by each partner in the year, after providing for pensions and annuities payable to retired partners, was £750,000 compared with £772,000.

The firm recruited 72 new partners during the period, with another 3,500 hired including 1,500 entry-level positions. Total staff numbers stand close to 14,000.

Deloitte chief executive and senior partner David Sproul said that better economic conditions and improved client sentiment should lead to “significant improvements” across its markets.

“Growth has increased in the first quarter of the new financial year and we are seeing a renewed confidence and optimism in our clients to make investment decisions,” said Sproul. “The global ambition of our clients and our people is creating opportunities for the firm to increase revenue internationally.”

However, Sproul warned that political uncertainty could slow up business activity.

Corporate finance delivered the biggest growth in 2014, up 4.7% to £424m, while tax and consulting were relatively static. Audit fees fell to £706m from £719m. Its Swiss practice increased revenues to £236m, from £209m (11% in local currency terms to CHF346m from CHF313m).

The firm opened its ‘digital’ office in Clerkenwell in June, while more tech and risk-based roles were created in Belfast and Cardiff. It is also looking to expand its CFO programme to include CIOs and chief procurement officers.

Related Articles

Top 50+50: Firms fall short on diversity

Accounting Firms Top 50+50: Firms fall short on diversity

2w Alia Shoaib, Reporter
Deloitte global revenues hit record $38.8bn

Accounting Firms Deloitte global revenues hit record $38.8bn

1m Emma Smith, Managing Editor
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

1m Alia Shoaib, Reporter
Deloitte reports gender pay gap of 18.2%

Accounting Firms Deloitte reports gender pay gap of 18.2%

3m Alia Shoaib, Reporter
Deloitte appoints new head of private client services

Accounting Firms Deloitte appoints new head of private client services

3m Emma Smith, Managing Editor
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

1m Alia Shoaib, Reporter
Deloitte reports revenue growth of 11%

Accounting Firms Deloitte reports revenue growth of 11%

2m Alia Shoaib, Reporter
Deloitte acquires Swedish digital agency Acne

Accounting Firms Deloitte acquires Swedish digital agency Acne

2m Alia Shoaib, Reporter