BDO UK’s fee income was up 27% to £384m ($600m) in the year to 4 July 2014, with operating profits up by 42% to £78m.
The latest figures are the first to fully reflect BDO UK’s April 2013 merger with PKF UK, which increased the firm’s headcount by 40%. Prior to the merger, PFK UK’s latest fee income was at £103m in the year to 31 March 2012.
The boost in fee income still leaves BDO UK as the sixth largest firm in the UK, behind Grant Thornton UK, which reported fee income of £512m in the year to 30 June 2014.
The firm’s three main service lines all witnessed growth in the double digits: turnover in audit increased by 19% to £128m, tax fee income grew 21% to £99m and advisory climbed 39% to £157m.
In terms of audit, BDO managing partner Simon Michaels described the UK market in 2014 as "fairly static". Nonetheless, he said: "The larger company audit market has been through a significant change in the last year.
"Whilst the Competition Commission has addressed some of its flaws, we are realistic about short-term opportunities. We want to boost our market share of FTSE 350 audits to 5% in the next five years."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe growth in tax was rooted in growth within specialist areas, added Michaels, including private client, M&A and international corporate work for both domestic and global clients."
Conversely, in the advisory space: "Complex forensic projects, transaction services and M&A have all contributed to an increase in turnover," he added. "We currently act for around one third of the FTSE350 in an advisory capacity, which we want to boost to nearer 50% in the next five years."
Overall, Michaels praised the firm’s performance as "a testament to the hard work and expertise of all our people."
"It has been a significant year for us," he added, "We ensured our merger with PKF UK was a success and that it did not distract us from providing the level of service that our clients expect."
As far as staff numbers were concerned, the firm appointed a total of 23 partners, fourteen through internal promotion and nine external hires.
BDO UK also promoted over 800 people internally over the past financial year and plans to recruit over 400 people into the firm.
Looking to the coming financial year, Michaels said he was ready to accept the threat of "a sluggish outlook in the global economy," but added the firm remains well-placed to see growth in 2015.
"We have the strongest balance sheet in the mid-tier which gives us the financial stability to invest for the long term," he explained, "This has enabled us to invest in new technology and services for our clients with will further strengthen us as we go forward into 2015."
Related articles:
BDO UK sees first benefits of merger
