Praxity members report record revenues up 12%

Praxity participant firms reported record combined global revenues of $5.83bn (£4.46bn) for the year ended 31 December 2018, representing a year-on-year increase of 12.21% in real terms, driven by a surge in audit and accountancy services

Audit remains the main revenue stream for Praxity, increasing by 12.5% in 2018 and accounting for 40% of total fee income within the alliance, at $2.35bn.

The second largest revenue stream was tax services, which accounted for 24.7% of total fee income ($1.45bn).  Accountancy services grew 21.3% to reach £709m.

Graeme Gordon, Praxity CEO, said: ‘With audit methodology changes coming in and clients’ expectations continually evolving, I suspect clients will feel more comfortable in the future using independent firms.

‘In part this is due to flexibility, with independent firms more able to tailor their audit and assurance approach to clients’ needs, rather than being forced to adopt a one-size-fits-all offering.  This explains our robust results in this service line.’

Regionally, growth was recorded everywhere with the exception of Latin America, where Praxity ranked fourth for fee data and saw revenues decline 5.09%.

Gordon said: ‘Economic and political uncertainty continues to plague the region, however much of this drop can be attributed to the inflation of local currencies.’

For the first time, Praxity participants in the US and Canada exceeded $3bn, a year-on-year rise of 11.4%. Revenues from Europe also achieved double-digit growth (12.5%) to hit £1.6bn, compared to 7.7% in 2017. Asia Pacific continued to grow consistently, with over 17% increase to $828m and there was growth in the Africa region, up more than 9% to $99m.

Praxity participant firms now employ 51,983 people in 111 countries, an increase of over 9%. The number of partners increased from 3,682 to 3911, a rise of 6%. Last year the alliance welcomed one new UK firm - Shorts.

Report by Pat Sweet

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