BDO is the latest major UK firm to suffer
a slump in revenue, reporting a 5 percent decrease to £335 million
($559 million) in the year to 3 July 2009. The revenue drop is a
trend suffered by several leading UK firms in the latest reporting
periods. The firm said the decline reflects a steep fall in
mid-market transactions and one-off assignments.
Overall profit decreased from £65 million to
£58.7 million. There were decreases in audit, corporate finance and
tax. Corporate finance revenue alone was down £21.6 million.
BDO’s restructuring business showed the
strongest performance, growing by 49 percent to £18.8 million,
which the firm said was a result of increased activity related to
the economic downturn.
The restructuring practice increased its
number of partners by a third, and added 28 secondees and 20
permanent staff. The firm’s forensic services and investment
management practice also showed modest growth.
In July, the firm announced 10 percent of its
235 partners from its UK business were to leave the firm. This
followed BDO’s alignment of its tax and audit practices in
February, which reduced the size of its leadership team to six.
In December 2008, the firm also cut 250 jobs
across the country, which represented about 8 percent of its total
BDO has reduced its graduate intake, which was
down 12 percent to 138 in September 2008. In 2009, it expects this
to drop to about 100.
BDO UK expanded its overseas businesses in the
past year, opening a new corporate finance and advisory arm in
Dubai and pouring funds into BDO India.