Investment is the key to accountant Erns & Young’s surging revenues
ERNST & Young today announced an 11 per cent increase in revenues for its UK business – the highest in six years – although profits per partner are understood to have dipped slightly from last year’s £663,000.
• Ernst & Young revenues increase by 11 per cent for UK businesses
• Revenue increase is highest in six years as increased investment is heralded
Revenues in the year to the end of June grew to £1.6 billion, which the practice said was down to the success of its globalisation strategy, investment in staff and “significant new client wins”.
Although separate figures have not been published for the firm’s Scottish arm, which operates from offices in Aberdeen, Edinburgh, Glasgow and Inverness, it is understood growth was broadly in line with the UK.
More than 50 people have been recruited north of the Border in the past 12 months and Jim Bishop, senior partner in Scotland, said “increasing investment during periods of economic unpredictability has been vindicated by the contribution we have made to the continued success of the UK business”.
“It is a long-term strategy that is paying dividends,” he said. “We are committed to building the country’s number one professional services firm. That means recruiting the brightest and best talent, rewarding the achievements of our existing staff, improving our infrastructure and, most importantly, developing services that support the ambitions of our clients.”
During the past 12 months, a new Glasgow office was opened and sponsorship of the 2014 Commonwealth Games and Ryder Cup announced.
UK-wide, Ernst & Young said it had benefited from a surge in demand from companies that had previously re-located offshore returning to Britain following favourable changes to the tax system.
All areas of the business posted revenue growth for the first time in three years.
The transaction advisory services division saw revenues grow 10 per cent to £306m, advisory grew by 12 per cent to £416m and tax posted the highest growth of all the service lines at 16 per cent, to £431m.
The assurance business saw growth of 8 per cent to £478m helped by a number of audit contract wins with clients including the Audit Commission and Dyson.
Last month, rival Price- waterhouseCoopers (PwC) reported that income climbed by 7 per cent in the 12 months to June 2012 to £2.6bn.
Overall profits at the PwC rose to £727m from £656m a year ago – generating an average profit per partner of £798,000.
Deloitte grew its sales by 11 per cent with profits up £34m to £569m. KPMG Europe’s latest figures, for the year to 30 September 2011, showed total turnover growing by 13 per cent.
Search for a job
Search for a car
Search for a house
Weather for Edinburgh
Wednesday 19 June 2013
Temperature: 9 C to 18 C
Wind Speed: 16 mph
Wind direction: West
Temperature: 12 C to 20 C
Wind Speed: 8 mph
Wind direction: East