Ernst & Young UK (E&Y UK) has reported
its highest revenue growth since 2006, up 11% to £1.6bn in the year
to 30 June 2012.
The growth was attributed to the firm’s
globalisation strategy, investment in talent and new client
wins.
The announcement follows Deloitte UK reporting
11% annual growth, and PwC UK reporting 7%, in August and September
respectively.
The results mark the first time in three years
that E&Y UK has seen revenue growth across all four service
lines. Tax showed the biggest increase, up by 16% to £431m,
advisory grew 12% to £416m and transaction advisory services grew
10% to £306m, boosted by pre- and post-deal integration
activity.
‘A groundswell of audit retenders’, provided a
‘positive uplift’ for the firm’s assurance revenues, growing 8% to
$478m. E&Y UK chairman and managing director Steve Varley said
healthy audit revenue was due to “some very significant new
clients” including work coming from the dissolved UK Audit
Commission.
The results were driven by leveraging the
firm’s “global scale and structure in the emerging markets,” said
Varley, working with cross-border companies on a range of issues.
There has also been a rise in business from businesses returning to
the UK after relocating offshore, following changes to the tax
system.
E&Y UK increased its staff headcount by
10%, with an extra 1,200 recruits and two new offices in Cambridge
and Glasgow. The firm has also set itself a diversity target, says
Varley, “that at least 30% of all our new UK partners are women and
at least 10% are BME by 2015”, adding “aspirations alone won’t
drive change, but we believe diversity and inclusiveness is a
business imperative”.
Varley concluded: “We’ve had a good year in
challenging economic times. I am optimistic that we can continue to
shape and positively support the future direction of our clients’
growth, the way that our people work, and the social and business
issues that impact on the growth of the UK economy.”
E&Y globally increased its revenues by
7.6%.
