The UK’s second highest fee earning firm, Deloitte, has reported a
2 percent drop in annual gross revenue to £1.97 billion ($3.3
billion) in the year to 31 May 2009 – an indicator of how badly
firms are being affected by the financial crisis.
It meant Deloitte dipped below the £2 billion
plateau it burst through in 2008. It is the firm’s first revenue
drop since 2002.
The drop was the second by a major firm in as
many weeks, following US mid-tier firm BDO Seidman’s revenue
decline of 6 percent to $620 million in the year to 30 June
Deloitte senior partner and chief executive
John Connolly said overall business was satisfactory despite tough
markets and he expected a fragile and slow recovery. He said the
audit and the consulting divisions grew 7 percent and 3 percent
respectively, which offset failing revenues in tax (down 7 percent)
and corporate finance (down 9 percent).
The number of people employed by the firm in
the year averaged 11,500, almost 2 percent higher than the previous
year. The net profit distributable to partners was £601 million,
down 6 percent on the previous year. The average profit per partner
fell by 8 percent to £883,000.