Deloitte lifted by an upturn in client confidence

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Accountancy giant Deloitte said business from clients looking for growth gave its UK revenues a lift in the last financial year.

In the 12 months to the end of May, Deloitte UK saw its turnover grow by 8 per cent to £2.5 billion, with all divisions enjoying a rise.

Chief executive David Sproul said: “This is a strong performance for our firm, given the continuing challenging economic environment.”

Sproul said UK businesses have now reached a turning point in terms of confidence and, with substantial cash holdings and improving credit conditions, have the firepower to invest for growth.

He added: “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.”

Deloitte UK’s consulting business saw revenues increase by 14 per cent, to £596 million. Tax services and corporate finance saw the most modest rates of growth.

Investments in the business, including a new pension scheme and the acquisition of strategic consulting firm Monitor, meant profits were slightly lower than a year earlier. Profit distributable to partners for the year was £571m, down slightly from £569m in 2012.

The average profit earned by each partner in the year, after providing for pensions and annuities payable to retired partners, was £772,000 compared with £789,000 last year.

The firm, one of accountancy’s “big four”, recruited more than 3,000 people and added 70 partners.