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Deloitte increases UK revenue by 7%

  • Author: International Accounting Bulletin
  • Published: 10 Aug 2011
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Strong growth in consulting and corporate finance has helped Deloitte UK increase annual revenue by 7% to £2,098 million in the year to 31 May 2011.

The firm reported audit revenue grew by 4% to £652 million, tax by 5% to £534 million, consulting by 13% to £517 million and corporate finance increased 11% to £395 million.

The results are a welcome return to growth for Deloitte, a firm that suffered a marginal contraction in revenue last year. Although trading conditions have somewhat improved for UK firms but Deloitte’s glowing results are partly being fuelled by strategic acquisitions.

Elsewhere in the market, 2010/2011 results have proved a mixed with Grant Thornton and Baker Tilly reporting revenue contractions while RSM Tenon and Smith & Williamson had growth.

Acquisitions bear fruit

Deloitte's consulting growth was driven by the integration of acquired boutique consultancies ReportSource and Exsigno. The firm noted a strong demand from financial services and the private sector in the second half of the year.

Corporate finance revenue increased due to the integration of Drivers Jonas last year. Deloitte said markets are starting to show sustained improvement and good growth in M&A related services.

In audit, Deloitte picked up the blue chip audits of Glencore and International Power, while the firm’s enterprise risk services practice produced double digit growth.

Deloitte said tax growth was fuelled by strong demand in R&D services, dispute resolution and the entrepreneurial market.

Rise in headcount

Deloitte increased its headcount by 8% and equity partners by 4%. Over 1,500 experienced hires were recruited and 1,100 graduates and 100 school leavers will join the firm this autumn.

Profit distributed to partners for 2011 was £535 million compared with £590 million in 2010. The average profit earned by partners was £758,000 compared with £873,000 last year. Deloitte said this reflected an increase in the number of partners.

“With the UK at an economic crossroads and the public sector downsizing, the UK will rely increasingly on the private sector to create jobs and boost the economy," Deloitte chief executive and senior partner David Sproul said. "Deloitte has a key role to play in taking a lead in responding to the government’s growth and competitiveness agenda for the UK and helping our clients grow their businesses.

“I see opportunities for growth in sectors and geographic regions where Deloitte is not currently the leading professional services provider. We are also embracing the global environment our clients operate in.”

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