Baker Tilly reports impressive profits in "transformational year"

ACCOUNTANTS and business advisers Baker Tilly has reported strong financial results for a milestone year which saw it rescue rival RSM Tenon out of administration.

 
The firm, which has offices in Leeds and Hull, has posted a 47% growth in turnover to £245m for the financial year ending March 31.
 
Profit growth was even more impressive.  Consolidated profit before tax rocketed up 112% to £11.9m, while Baker Tilly UK Group LLP partner profit was up 28% to £32.5m.
 
The firm said it had seen double-digit revenue growth in all service lines. Tax and advisory up 41% to £107m, audit and assurance up 23% to £66m, restructuring and recovery up 14% to £27m, corporate finance up 35% to £16m. Baker Tilly’s new new risk advisory service added £15m to revenues too.
 
Laurence Longe, Baker Tilly’s managing director, said: “This has been a transformational year for the group which has seen a full integration take place within a year of our acquisition of Tenon in September 2013.
“This achievement was only made possible by the huge contribution and commitment shown by partners and staff from both firms who largely succeeded in providing a ‘business as usual’ environment for our clients whilst a full merger and integration process was underway.
 
“Although the financial performance of a professional services firm in the year following any major merger or acquisition can often be a challenge,  it is certainly pleasing to note that both consolidated profits and partner profits rose by significant amounts. Also pleasing is the fact that since the year-end, we have fully repaid the long term loan of £32m taken on to finance the Tenon acquisition.
 
Looking ahead, Mr Longe said: “The outlook for the current year looks promising, with group results on budget for the first eight months and signs of growth throughout our service lines.
 
“It has been a very successful year for the group, and the Tenon transaction has effectively consolidated the mid-tier accountancy firm market. We look forward to the future with considerable optimism.”

 

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