Press release by BDO – Accountancy and business advisory firm BDO LLP, which saw new managing partner Paul Eagland take position on Monday, has announced double digit growth in profits as investment in talent and technology pays off, according to its annual results published today.
The firm, which has exceeded the £400m revenue mark for the first time, reports underlying revenues of £405m for 2015/16 – an increase of 3.8% compared to £390m last year.
The firm continues to make significant progress in profitability too. BDO’s profits grew 22% to £80.3m compared to £65.6m last year. As a result, average profits per equity partner (PEP) increased by 29% to £360k.
Across the business, BDO has made more than 500 promotions in the last year and saw 700 trainees move up the ranks through its graduate and school leaver programmes.
Paul Eagland, managing partner at BDO LLP, says: “The results are testament to our partners and people who have worked diligently and passionately over the course of the year helping our clients succeed. The increase in profits reflects a return on the firm’s investment and ongoing focus on sustainable, profitable growth.”
Growth across the business
BDO’s audit arm increased revenues with a changing regulatory market creating new opportunities among its high growth, entrepreneurial client base. Revenues increased by 8.3% to £143m compared to £132m last year.
The firm’s tax business continued to expand, following 20% growth the previous year. The team, which now has revenues of £126m (compared to £119m last year), continues to invest in talent to meet client demand with seven new tax partners joining the firm during the summer.
BDO’s advisory revenues held steady at £136m. Its business recovery, forensic, valuations, tax investigations and global outsourcing business areas have all performed well. For the fifth year running, BDO is the leading reporting accountant for AIM IPOs.
Eagland adds: “The ambitious and high-growth businesses we work with – many of which are in the mid-market, AIM-listed or PE-backed – have continued to succeed despite uncertainty in global markets, the EU referendum and government changes at home. This, in addition, to significant regulatory changes has created opportunities for both BDO and our entrepreneurially-spirited clients.”
Changes at the top
Last week, Simon Michaels stepped down from his role as managing partner after completing the maximum two four-year terms in position.