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Deloitte reports revenues up 8 percent on back of consulting growth

David Sproul

London: A surge in consulting business last year helped business advisory firm Deloitte increase revenues in the UK by 8 percent.

  • Revenues up 8% to £2.5 billion
  • Growth reported across all of the firm's business divisions
  • 750 places available for school leavers, students and graduates
  • More than 3,000 people recruited in last financial year
  • 70 new partners promoted or recruited, taking total to more than 1,000

For the year to 31 May 2013, Deloitte reported revenues of £2,515 million, an 8% increase on the previous year (£2,329 million).

The firm says it achieved strong performance across its five business divisions. Consulting grew by 14% to £596 million (£524m in 2012), driven by demand for data analytics and cyber security, Audit by 12% to £742 million (£663m), Tax by 6% to £563 million (£529m) and Corporate Finance by 1% to £405 million (£402m). Revenue in Switzerland (which is administered from the UK) remained broadly flat in Sterling terms (£209m vs. £211m), although increased by 7% in the local currency (CHF313m vs. CHF293m).

Profit distributable to partners for 2013 was £571 million, compared to £569 million in 2012; however the average profit earned by each partner in the year, after providing for pensions and annuities payable to retired partners, fell to £772,000 compared with £789,000 last year.

David Sproul, chief executive and senior partner of Deloitte, commented, "This is a strong performance for our firm given the continuing challenging economic environment. We continue to make significant investments in the business, including a new pension scheme for our people which has attracted an additional 2,500 members. We have also invested in the breadth and depth of expertise we offer our clients, such as through the acquisition of strategic consulting firm, Monitor, and this is reflected in the growth we have achieved across our business.

"I believe UK businesses have reached a turning point in terms of confidence and, with substantial cash holdings and improving credit conditions, they've got the firepower to invest for growth. The appetite for risk is increasing and clients are showing greater willingness to invest. This is evidenced by a higher demand for those services that are focused on helping clients grow."

Encouraging enterprise

Deloitte has directly invested over £1m this year in helping small and medium sized companies to grow. This includes tailored support to around 30 high potential socially innovative businesses across the UK.

Sproul said, "An independent evaluation of this programme by Social Enterprise UK found that our support helped those enterprises enjoy an average growth rate of 45% in the past year. We have now announced our second wave of Social Innovation Pioneers to continue the success of this scheme."

Deloitte has also established its UK Futures programme, which aims to address the challenges British businesses face as they seek a new era of growth.

Sproul added, "Through this programme we will be providing pro bono support to a selected group of more than 20 small and medium-sized businesses to develop their strategies for growth. This is particularly focused on helping generate international opportunities and allows smaller companies to tap into Deloitte's on-the-ground expertise throughout its international network of member firms.

"Investing in skills and talent remains a key priority for Deloitte. Last year we recruited almost 1,700 graduates, school leavers and students and have a further 1,750 places available this year. We also promoted 48 new partners in June and hired 22 direct entry partners from competitors and industry over the past 12 months, taking the total number of partners in the firm to 1,011. This represents an important investment in the future success of our clients."

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