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August 28, 2008

Chief gets 22% pay rise as firm edges past £2bn

Deloitte UK has confirmed gross revenue growth of 11.5 percent to reach £2.01 billion ($3.68 billion) for the year ended 31 May 2008. The firm’s profit rose by 16 percent to £654 million.

Deloitte UK senior partner and chief executive John Connolly pocketed £5.7 million (up 22 percent) while partners on average took home £970,000 (up from £877,000). The results confirm Connolly as one of the highest paid leaders in the UK profession. Deloitte UK service line growth 2007 2008

Connolly said each of the firm’s core service lines generated double-digit growth. Audit accounted for £619 million (up from £557 million) which represents 30.8 percent of the firm’s fee split.

“Our audit practice built further upon the winning position it has attained in the last few years achieving net revenue growth of 11.1 percent with particularly strong performances from our security, risk and regulatory teams, combined with a continuing flow of new clients in our core audit division,” he said.

Tax also performed well despite the downturn in M&A activity. Connolly said: “Net revenue growth was 10.6 percent fuelled by our leading position in many service lines and the opportunities offered by a tax environment that remains uncertain with continuing legislative change leading to a demand for our compliance, reporting and accounting services.

“Consulting net revenue grew by an exceptional 13.2 percent, with a particularly strong performance in enterprise applications, the business systems planning and implementation unit.

“From an industry perspective, the highest growth was achieved in the financial services and the technology, media and telecommunications practices.”

Deloitte’s corporate finance practice achieved 13.1 percent growth despite a slowdown in the last quarter due to a cooling M&A market. Deloitte said growth was buoyed by debt, forensic and restructuring work and the firm’s ability to respond to changing client needs.

Connolly added: “Our forensic and dispute services group has seen tremendous growth over the past year, with revenues up 50 percent and our corporate finance advisory team had a successful year assisting with multinational deals particularly those involving infrastructure or sovereign wealth funds.”

Connolly noted one of the firm’s major highlights of the past year was becoming a sponsor and official provider of professional services to the London Organising Committee for the Olympic Games, and the 2012 Paralympic Games. The firm will also sponsor the 2012 Olympic Games.

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