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October 1, 2012

E&Y UK annual revenue highest in six years at 11%

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%.

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