London: EY, the professional services firm, has reported turnover growth of 8.6% to £1.868 billion for the year ending 27 June 2014 — on the back of 15% growth in its consulting business.
Distributable profits increased 12% to £412 million. Globally the firm reported revenues of US$27.4 billion for the same period — 6.8% growth over the previous financial year in local-currency terms.
- Recruited over 3,500 people
- Record 68 equity Partners join the UK Partnership
- Launch of the EY Foundation
- Continued investment in regional business and a major new office in Canary Wharf
- Growth reported across all service lines
- Distributable profits up 12% to £412 million
Steve Varley, EY's UK Chairman, says, "Critical to EY's market leading growth in the UK is our global strength together with deep local connections in each of our 21 offices in the UK. Our ability to collaborate internationally has given us significant competitive advantage in helping our clients expand across borders.
"Our commitment to a long term investment strategy in the UK, especially through the recession, continues to pay off. Looking forward, even though there is a degree of political uncertainty in the UK, I do feel positive about the health of the economy and the opportunity this gives businesses to grow. At EY, our global strategy means we have exciting times ahead and I am confident that this strategy will help us help our clients grow in the UK and internationally."
In the UK, EY grew all of its four service lines. The Advisory business grew by 15% to £559 million with good growth across all sectors. Assurance grew by 8.5% to £550 million.Transaction Advisory Services (TAS) grew by 5.9% to £289 million. Key growth drivers for TAS were the resurgence in private equity and a significant boost in IPO activity — EY advised on 40% of all IPOs in the last year. Tax grew by 3.3% to £470 million.
In terms of sectors, Financial Services, the firm's largest industry sector, continued its outstanding growth track record with a 6th straight year of strong growth. Other sectors, particularly Technology, Media, Telecoms and Private Equity also had very strong years.
Varley says, "We continue to invest in services, our regional businesses and talent in the areas that matter the most to our clients and broader stakeholders. This includes significant investment into real-time assurance, supporting the next generation of entrepreneurs, fraud investigation technology, corporate integrity, cyber security and data analytics. We are investing £20 million over the next three years in our offices outside of London, including a £650,000 investment in a new technology hub based in Manchester and the expansion of our Belfast office that will create almost 500 new jobs."
Average distributable profit per partner increased to £727,000, up 11.7%, from £651,000 in 2013.
Investing in people
Strong business growth has also enabled EY to invest heavily in its people, with a record 68 new equity partners announced earlier this year. This month, the firm also welcomed over 750 graduates and 100 school leavers into its offices across the UK, as well as opening its doors to over 700 undergraduates during the year for internship and work experience programmes.
Varley comments, "The business performance we have achieved this year has been mirrored in the investment we are making in our people, from our school leavers and graduates through to our partners. I am particularly proud of our 39 new internal partner admissions within the business and see it as a testament of the strong talent pipeline we are nurturing at every level. The leadership and mentoring schemes for our high performing women and black and minority ethnic staff continue to accelerate the careers of those with highest potential. We also continue to promote a flexible working culture across the firm for all our people."