Partners at Deloitte have seen payouts cut for the second year running, despite the Big Four firm reporting a rise in profits for the fourth consecutive year, with revenues increasing by 1.4% to £2.55bn
Deloitte’s financial results for year ended 31 May 2014 show the profit distributable to partners was £554m, a 3% drop from £571m in the previous year. The average profit earned by each partner, was £750,000 compared with £772,000 last year.
Audit revenues fell from £719m in 2013 to £706m, while the strongest performance came in the Swiss practice which increased revenue by 13% to £236m, up from £209m last year. Corporate finance grew by 4.7% to £424m (£405m in 2013) and consulting grew by 0.5% to £622m (£619m in 2013). Tax practice revenues were broadly unchanged at £562m compared with £563m last year.
David Sproul, chief executive and senior partner of Deloitte, said: ‘This is the fourth consecutive year in which revenue has increased, with the firm growing by more than 30% in this period, averaging growth of 6.9%. This year saw the slowest growth of those four years, reflecting the uncertainty that has existed. Looking ahead, we expect that better economic conditions will result in significant improvements across our markets. Growth has increased in the first quarter of the new financial year and we are seeing a renewed confidence and optimism in our clients to make investment decisions.’
Sproul indicated that the firm saw opportunities to increase revenue internationally, stating: ‘More than 200 of our partners and staff are currently on secondment overseas and we think this will become a bigger feature over the next year or more’.
‘However, whilst we continue to make investments for the future, we do hold a concern that political uncertainty may dampen business activity later in the year,’ Sproul said.
Deloitte has added 72 new partners over the past year and hired more than 3,500 employees including 1,500 at entry-level positions. The firm said it aims to have the 500 positions it has created in its new digital business filled before the end of 2015.