Raymond Doherty 29 Aug 2017 11:53am

Deloitte UK boosts revenues by 11%

The Big Four firm recorded its seventh consecutive year of growth but partner profit slowed

Distributable profit for 2017 was flat year on year at £608m and average profit per equity partner was £865,000 as the firm continued to invest in digital and new technology.

Overall Deloitte increased its revenue by £340m in the year ended 31 May 2017, from £3.04bn to £3.38bn.

This was powered by double-digit growth from it consulting (13.6% to £859m) and audit and risk advisory (13.1% to £932m) arms. Deloitte’s tax business grew by 5.7% to £691m and financial advisory, on a like-for-like basis, grew by 1.5% to £459m.

David Sproul, senior partner and chief executive of Deloitte, said the results were “a good performance in a complex and uncertain market which has been impacted by Brexit and the elections in the US and UK.

“We have continued to invest through this year of uncertainty and that investment in our people, in winning market share and in building market leading solutions has resulted in flat distributable profits,” he added.

Regulatory changes to the audit market has increased tendering for the Big Four firms and Deloitte has won some lucrative contracts over the past 12 months including BAE Systems, BP, Centrica and GlaxoSmithKline. It now enjoys more than a quarter of the FTSE 100 audit market share.

“We also saw strong growth in forensic driven by a number of large investigations and regulatory remediation work across Europe. From an industry perspective, growth was notable in Consumer and Industrial Products and Life Sciences and Healthcare,” said Sproul.

“Switzerland delivered another impressive performance, driven by high demand for digital technology, cyber and M&A services.”

The firm recruited more than 3,500 people in the last financial year including more than 1,600 school leavers, interns and graduates. Deloitte UK promoted 57 new partners and recruited a further 30.

This year the firm announced several technology tie-ups and investments, including with Apple, McLaren and Ance.

“Our clients are operating in a more globally connected way than ever before, and are increasingly turning to us not only for advice, but also for digital and physical products to solve their problems. Through these alliances and acquisitions we will see Deloitte increasing our recruitment in the areas of digital design and big-data analytics,” said Sproul.

Earlier this year Deloitte wrestled back its crown as the biggest firm in the world by fee income.