Tax income surges 20% as BDO reports annual revenues of £391m
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.”