A LEAP in fee income for BDO’s tax practice has pushed the top six firm towards £400m in revenues, according to its 2014/15 annual results.
The firm, which has increased revenues by 40% in the last three through the merger with PKF in 2013, said fee income grew 2% to £391m during the last year.
BDO’s tax business was a major contributor to growth with a changing regulatory environment creating increased opportunities among its mid-market and large corporate client base. Revenues increased by 20% to £119m, making BDO the fastest growing tax practice of the top ten UK accountancy firms.
Audit revenues grew by 2.5% to £132m, despite a fairly static domestic audit market. In its advisory practice, BDO’s forensics, valuations, tax investigations and global outsourcing business areas all delivered profitable growth.
Transaction services had a particularly strong year and, for the fourth year running, BDO is the leading reporting accountant for AIM IPOs.
Globally, BDO’s international network grew by nearly 9% through both organic and acquisitive growth, reporting revenues of $7.02bn (£4.6bn).
The firm has made 500 promotions internally and invested heavily in technology, including BDO InTouch – a new service underpinned by cloud accounting technology – and BDO Advantage – a data analytics tool. These investments have seen profits per partner stay in line with last year’s figure, holding steady at £280,000.
Simon Michaels, managing partner at BDO, said: “The last year has seen us focus on long-term, sustainable growth; one that sees investment in our people and technology at the very centre of our business decisions. We have a strong business strategy and vision, and the financial strength that’s needed to invest and shape our business for further growth in the future.”
Richard Cartwright becomes the new head, taking over from incumbent head of office David Lemon
Brian Burke, business development director, has moved within the firm to 'develop Quantuma’s networks with Sussex professional firms'
Stephen Mills joins the Manchester office from IBM, where he spent 12 years as an associate partner in the data, analytics and cognitive consulting group
Rupert Guppy will be responsible for capital allowances in the southern region, and joins the firm from specialist consultancy E3 Consulting