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
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
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
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
“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.”