Profits up 22% for accountancy firm as investment pays dividends
ACCOUNTANCY and business advisory firm BDO, which has offices in Birmingham, Leicester and Nottingham, has announced double digit growth in profits as investment in talent and technology pays off.
The firm, which has exceeded the £400m revenue mark for the first time, has reported underlying revenues of £405m for 2015/16 – an increase of 3.8% compared to £390m last year.
Profits grew 22% to £80.3m compared to £65.6m last year. As a result, average profits per equity partner (PEP) increased by 29% to £360,000.
Paul Eagland, managing partner at BDO, said: “The results are testament to our partners and people who have worked diligently and passionately over the course of the year helping our clients succeed. The increase in profits reflects a return on the firm’s investment and ongoing focus on sustainable, profitable growth.”
The firm’s audit arm increased revenues with a changing regulatory market creating new opportunities among its high growth, entrepreneurial client base. Revenues increased by 8.3% to £143m compared to £132m last year.
The firm’s tax business continued to expand, following 20% growth the previous year. The team, which now has revenues of £126m (2015: £119m), has continued to invest in talent to meet client demand with seven new tax partners joining the firm during the summer.
BDO’s advisory revenues held steady at £136m. Its business recovery, forensic, valuations, tax investigations and global outsourcing business areas also performed well.
While the firm works for a third of FTSE 350 companies in an advisory capacity, it remains committed to its mid-market, private equity, AIM-listed, high-growth heartland. For the fifth year running, BDO is the leading reporting accountant for AIM IPOs.
Richard Rose, partner and head of BDO in the Midlands, said: “The ambitious and high-growth businesses we work with in the region and across the country – many of which are in the mid-market, AIM-listed or PE-backed – have continued to succeed despite uncertainty in global markets, the EU referendum and government changes at home.
“This, in addition, to significant regulatory changes has created opportunities for both BDO and our entrepreneurially-spirited clients.”
