PPP rises for Grant Thornton but overall revenue down slightly
BUSINESS and financial adviser Grant Thornton UK has seen an increase in profit per partner but a decline in overall revenue compared with last year.
The firm recorded pre-tax profits of £75.2m based on revenues of £377m for the financial year ended June 30, 2011.
Revenue was down £2.7m (0.7%) on last year’s results with the reduction in public sector advisory work being largely responsible. Average profit per partner increased to £342,000.
Scott Barnes, Grant Thornton chief executive, said the firm’s strategy remained focused on dynamic large private and smaller listed companies although there may be opportunities in the large listed market if European Commission proposals on audit market reform became law.
Over the year, assurance revenues grew 2.8% to £122.3m while taxation services contracted 1.4% to £91.7m. Overall revenues within the advisory practice were £150m, with 17.7% growth in forensic and investigation services to £17.7m and 1.9% growth in recovery and reorganisation to £97.1m.
Corporate Finance revenue dropped £5.7m to £35.2m, due to reduced activity within the firm’s Government, Infrastructure and Advisory business following government spending cuts.
“Given the continuing difficult economic conditions, Grant Thornton’s performance has been very strong. We knew it was going to be a tough period and it is testament to our core strategy and the strength of the partnership that we have come in ahead of expectations,” said Mr Barnes.
Looking ahead, he said the firm’s newly-signed three-year contract from the Department of Business Innovation and Skills to deliver the new Manufacturing Advisory Service was encouraging, while it was well positioned to pick up more public sector audit work.
Dave Munton, office managing partner at Grant Thornton in Birmingham, added: “In addition to playing a vital role in winning the prestigious Manufacturing Advisory Service contract, the Birmingham office has won several major audit clients recently, including Birmingham Science Park Aston, Anthony Collins Solicitors and Rhead Group Limited.
“The continued success of the Birmingham office is a tribute to the team’s hard work, enthusiasm and dedication to delivering exemplary client service. We have continued to invest in new talent, including corporate tax partner David Hillan, who joined earlier this year, and we expect to make further investments across key industry sectors and specialist disciplines within the firm during the coming year.”
