Profits slip at accountancy heavyweight
BDO’s profits slipped by 8% to £187m during the 2021/22 financial year, newly published accounts reveal.
The news comes despite the firm accumulating revenues of £809m during the period.
The accountancy giant posted the 11% revenue increase after enjoying growth in its audit, tax and advisory service lines, but said a sustained period of investment in staff and technology had hit its bottom line.
The decline in profits means partners at the firm will receive a reduced pay packet.
BDO attributed its revenue growth to the resilience of the businesses it works with and the hard work of its staff.
The firm has made significant investments in the business after BDO partners made the strategic choice, at the start of the year, to raise levels of investment.
Overall, an additional £70m was invested in people, quality and technology across the entire firm.
The decision to invest in additional people – taking the firm from 6,000 to 7,000 – was designed not only to deal with the increased demand for services, but to also promote a healthier work-life balance by spreading workloads across more people.
Kyla Bellingall, Midlands regional managing partner at BDO, said: “Our strong growth this year is down to the resilience of our core market of high-growth, entrepreneurial businesses, combined with the hard work and ability of our people. During such uncertain economic times, businesses like ours need to invest in skills to stimulate growth and, ultimately, the economy. We’re using the proceeds of growth to invest in our people, for the long-term, with an additional emphasis on wellbeing, work-life balance, quality and innovation.”
Bellingall said: “We have created a truly unique and inclusive space in our newly opened Nottingham hub in the heart of the city.
“We have also made a significant investment in senior talent with partner and director appointments, across areas such as VAT, forensic accounting, business tax, transaction services and business outsourcing. We remain 100% committed to rewarding those within our business who continue to deliver high-quality services to our clients and audited entities day in, day out.”