30 Aug 2016 09:05am

Deloitte UK revenue rockets past £3bn

The Big Four firm has recorded profits of £608m, up 2.5% on last year
Caption: The Big Four firm has recorded profits of £608m, up 2.5% on last year

On the back of strong growth across all five-business sectors Deloitte posted its fastest revenue growth in a decade. It increased £313m in the year ended 31 May 2016, which pushed it past £3bn for the first time.

The partners saw an increase of £15,000 in their shared profits in the 12 months to the end of May 2016 to £837,000, compared with £822,000 in 2015.

Deloitte now audits 23% of the FTSE 100 and said it also increased its work on mergers and acquisitions this year.

The firm reported strong growth in its risk management, regulatory advice and international tax services. It saw an increased demand for digital services and invested in more than 30 disruptive start-ups.

David Sproul, senior partner and chief executive of Deloitte, said, “We have had significant success in the audit market, with four wins in the FTSE 100, taking our market share to 23%. It has also been a strong year for our advisory businesses, given high levels of demand for our M&A, risk management and regulatory, international tax and compliance services. We’ve also had high demand for our business transformation capabilities using technologies such as digital, cloud and analytics. In our international markets the firm’s Swiss Practice has grown significantly, at 26%.

“From an industry perspective, growth was most notable in health and life sciences, financial services, manufacturing and technology, media and telecommunications. Our global, private and national sectors all performed well, demonstrating our ability to serve a range of different demands and requirements," he added.

Sproul did warn of the “challenges” posed by the EU referendum vote. He said, “The early economic indicators suggest the uncertainty created by the Brexit vote will lead to a slowdown in the second half of this year.”

He also said that if the government clamped down on skilled migrants following the EU referendum it could backfire on the economy.

The firm’s gender pay gap stands at 16.8% this year, compared to 17.8% in in 2015, and the national average of 19.2%. The firm's target is that 25% of partners will be women by 2020, this year 24 women were promoted to partner - 30% of the total partner promotions - bringing the total percentage of female partners to 17.6%.

Earlier this year it was revealed that PwC had replaced Deloitte as the world’s largest firm by fee income after two years of playing catch-up.

Raymond Doherty


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