Deloitte sees revenue fall

BUSINESS advisory firm Deloitte has reported revenues of £1,953m for the year ended May 31, 2010 – down £16m on the previous year. The firm has blamed the tough economic environment.
 
The profit for the financial year distributable to partners was £590m against £601m in 2009. The average profit earned by each partner in the year, after providing for pensions and annuities payable to retired partners, was £873,000 compared with £883,000 last year.
Deloitte said its business divisions performed strongly in the context of the economic environment. Revenues in Corporate Finance grew by 10.6%, while revenues were down 2.9% in Audit, 2.3% in Tax and 4% in Consulting.
 
John Connolly, Deloitte senior partner and CEO, said: “Despite a second successive year of very challenging markets for Deloitte and our clients, we are emerging from the recession with a very satisfactory performance and our standing in the market enhanced. Our firm is in great shape to support our clients in the continuing complex environment, and to capture growth opportunities as we continue to gain market share.
 
“We continue to build our audit market share, with significant FTSE 100 audit wins including Kingfisher plc and Essar Energy plc, while Tax achieved a market leading performance. Consulting produced a very robust performance given curtailed discretionary spend in both the public and private sectors. Whilst the economic environment will remain fragile, we anticipate a return to revenue growth for our audit, tax and consulting businesses in 2011.”
 
He said the firm had placed special emphasis on retaining and developing our people throughout the downturn and, in fact, increased our headcount by 2.5% to more than 12,000 people as we build the firm for the future. During the year, it appointed 118 new partners and associate partners.

“We added a range of new businesses to our firm as part of our plans to position and grow the firm for the future, bringing in over 750 people. Drivers Jonas Deloitte was created following the merger with real estate advisory firm Drivers Jonas; we added ReportSource and Exsigno into our Consulting division; acquired sustainability consultancy dCarbon8; and expanded our Risk and Security businesses through the acquisition of IM Global and Simulstrat. Each of these transactions brings exceptional people, new skills and great clients to our firm.
 
“We will continue to look for opportunities to bring in highly skilled people who enable us to offer increased range and depth of advice to a broader number of clients. Notwithstanding the continuing challenges facing all businesses, I am confident that Deloitte is well positioned for the year ahead,” he added.
 
In the Midlands, the firm’s performance mirrored Deloitte nationally. Chris Loughran, Midlands practice senior partner, said Deloitte’s regional offices in Birmingham, Cambridge and Nottingham, had performed well in the challenging market conditions.
 
“The national performance is very much in line with what we have seen across our Midlands operations,” he said.
 
“We have sustained business growth by continuing to offer the highest level of service to our clients and seizing new opportunities when they arise, which in turn has helped the firm retain its market leading position.

“Overall the performance is pleasing and provides encouraging signs for the next 12 months.”