BDO has reported a 12% drop in annual profit but remain “pleased” with performance
The firm said a continued strategy “to prioritise investment in the long-term” has resulted in operating profit falling to £51.2m for the financial year ended 29 June 2012.
Overall tax income decreased 2.9% to £80m over the year “largely due to a decrease in corporate transactions” and turnover remained at £283m.
BDO, who announced a merger with fellow mid-tier firm PKF last month, revealed a 5% boost in audit income, which it attributes to "organic growth" and the firm’s investment in financial services expertise including three new financial services partners.
Simon Michaels, managing partner at BDO, said the firm is “pleased” that the long term strategy for growth and quality has resulted in a “solid performance.”
“Our strategy has been to prioritise investment in long-term growth and quality to establish a financially strong business for our clients and our people," he said. "I’m therefore pleased with our solid performance."
“We are also part of a thriving international network, recently breaking the $6bn income mark. This means we’re starting 2013 in a good position with an exciting year ahead.
"Our merger with PKF reinforces our ambition to lead the mid-market from this position of strength,” he added.
PKF also reported an annual income drop of £5m to £103.3m in October due to lower revenues in all of its practices except assurance and advisory.
PKF tax and financial planning revenues fell from £22.4m to £21.7m, management consulting dropped from £19m to £16.8m and corporate recovery income was down from £12.2m to £10.7m.
PKF will operate under the BDO brand when the deal is completed in spring 2013, with the new firm combining 3,500 members of staff and aiming for revenues approaching £400m.
KPMG also reported a loss this week, as its UK profits fell by 13% last year, blaming an economic recovery that “failed to materialise.”
The accounting giant reported a 4% increase in UK revenues to £1,774m in the year to 30 September 2012, led by a 12% growth in management consulting to £286m and an 11% boost to the risk consulting revenues to £250m.
KPMG’s practice line fell by 3% on the year to £380m, and audit revenues increased by 3% to £469m.
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