Joel Muckett 30 Oct 2017 08:39am

EY UK posts revenues of £2.35bn

EY UK has reported revenue growth of 9.2%, driven by investment in technology and good performance across all its business lines

The Big Four firm recorded £2.35bn in revenue for the year ending 30 June 2017, up from £2.15bn the previous year. However, the firm still trailed behind rivals PwC, who posted £3.6bn this year, and Deloitte who recorded revenues of £3.38bn.

“This is a strong performance, particularly in an environment where Brexit and other geopolitical events have added a new dimension to doing business in the UK,” said EY’s UK chairman Steve Varley.

Varley said the firm’s successes were the result of a long-term global strategy, with investments in new technologies and people being made as clients turn to EY for more innovative products and services.

Thanks to EY's revenue growth, average distributable profit per partner rose 2.3% to £677,000, compared to £662,000 in 2016.

There was significant growth across all of its four service lines, with transaction advisory aervices (TAS) being the fastest growing of them all, recording £396m in revenue – a 15.1% increase.

Revenue for the firm’s assurance business grew by 11.3% to £689m due to increased revenue from prior year audit wins and advice given to clients. Income from tax services grew by 9.1% to £634m as a result of strong performances from the firm’s M&A and global compliance and reporting team.

Financial services, the firm’s largest sector, enjoyed an 8% increase in revenues. Capital markets, transaction advisory services and technology businesses grew 20% altogether.

This year the firm invested in new technologies such as capital allowance automatic review (CAART) and EY Absolute.

“It has been a record year for tech investment which will continue into FY18 as we support our clients to transform their businesses. These investments will contribute to growth across all our service lines and sectors,” said Varley.

The Big Four firm recruited nearly 4,000 people across the UK, including 1,500 students and 130 apprenticeships, and over 4,000 people were promoted. It also added 63 new partners.