Deloitte UK records double-digit revenue growth
- Deloitte UK sees revenue up 11.2% to £3.4bn (2016: 13.6%)
- Double digit growth reported for UK firm in Consulting and Audit and Risk Advisory
- Distributable profit for 2017 was flat year on year at £608m reflecting continued investment in people and market leading solutions
- Deloitte Midlands continues strong growth both in revenue performance and headcount
- Increased share of listed companies in Midlands’ client portfolio
Deloitte, the business advisory firm, has increased its UK revenue by £340m in the year ended 31 May 2017, from £3,040m to £3,380m. This is the seventh consecutive year of revenue growth and the second consecutive year of double-digit growth.
Consulting revenue grew by 13.6% to £859m, Audit and Risk Advisory by 13.1% to £932m, Tax was up by 5.7% to £691m and Financial Advisory, on a like-for-like basis, grew by 1.5% to £459m. Deloitte in Switzerland grew by 14.4% to CHF567m (£439m: 31%). Distributable profit for 2017 was flat year on year at £608m and average profit per equity partner was £865,000.
Deloitte Midlands also saw year-on-year growth for the seventh consecutive year, echoing national performance, and continued to invest in both its people and premises. Headcount rose by 4.8% in FY17 and the firm has invested more than £12m in its refurbishment of Four Brindleyplace.
More than 140 new people joined the Midlands practice via a mix of experienced hire, graduate and apprenticeship routes. Deloitte Midlands has also promoted five of its people to partner.
In Birmingham, the practice saw its client portfolio across listed companies grow, and recorded strong performance across both its audit and risk advisory, and tax divisions.
Pauline Biddle, practice senior partner for Deloitte in the Midlands, says:
“The Midlands practice has performed well in a competitive market which is testament to the talent we have across our Birmingham and Nottingham offices and of course, the clients that they support.
“The last year saw further positive news for our region, from the appointment of the new West Midlands Metro Mayor to the shortlisting of our cities for both high profile international events, and major employers. We will continue to play our role in helping the region be as successful as it can.”
Commenting on Deloitte’s annual results, David Sproul, senior partner and chief executive of Deloitte, added:
“This is a good performance in a complex and uncertain market which has been impacted by Brexit and the elections in the US and UK.
“Our Consulting and Audit and Risk Advisory businesses both grew by double-digits. Consulting has continued to see significant demand for technology-enabled business transformation and there has been further strong growth in Deloitte Digital, our creative digital consultancy.
“The firm won a series of major audits this year, including BAE Systems, BP, Centrica and GlaxoSmithKline which has taken our share of the FTSE 100 audit market to 26% and we saw further success in the FTSE 250, private and international markets. Our Risk Advisory business has seen increasing demand for supplier risk, cyber and regulatory advice.”
“Growth in tax was driven by the global tax reset, Brexit and the possibility of US tax reform, alongside continued demand for technology-enabled compliance services. Financial Advisory advised on 87 M&A deals last year with a total value of more than £7bn and we advised on 38% of main market IPOs.
“We have continued to invest through this year of uncertainty and that investment in our people, in winning market share and in building market leading solutions has resulted in flat distributable profits.”