Risk advisory company Deloitte has increased its revenue by 5.9% from £3,380 million to £3,580 million in the financial year ended 31 May 2018, in turn marking the eighth consecutive year of revenue growth for the business.
Across the service lines, Audit and Risk Advisory revenues grew by 10.2% to £1,027 million, Consulting increased by 1.7% to £873 million and Tax saw its revenue rise by 5.8% to £732 million. Financial Advisory remained at £459 million. In 2018, distributable profit was £584 million, as the firm continued to invest profits in building new capabilities, such as an internal Centre of Excellence for robotic process automation and an Artificial Intelligence studio. Average profit per equity partner was £832,000.
David Sproul, senior partner and CEO of Deloitte North West Europe, said: “This is a good result in a market facing slower economic growth and continued uncertainty. Tax revenues have been boosted by demand for M&A, private client and employment-related services work, as well as demand for digital solutions to global compliance obligations, in which we are continuing to invest. Following the launch of our UK legal services, we’re also growing our offer in immigration, employment services, corporate dispute and resolutions alongside a focus on ‘new law’ services.”
Buoyancy of M&A market
Sproul went on to state: “Financial Advisory advised on over 100 M&A deals with a total value in excess of £40 billion and on 50% of main market IPOs. We saw strong growth in Transaction Services, Portfolio Lending and Debt Advisory services, driven by the buoyancy of the M&A market, in addition to continuing growth in Financial Crime services. Our Risk Advisory business saw an increase in demand for cyber and regulatory advice, while Consulting was focused on reinforcing its leading position in delivering digital transformation programmes for clients. The business integrated new additions including creative agency Acne and proposition design consultancy Market Gravity into Deloitte Digital, while at the same time continuing to build its alliances in the market with Apple and McLaren Applied Technologies.”
In addition, Sproul commented: “The audit profession has faced significant scrutiny in the past year, with concerns raised over quality, conflicts of interest and a lack of choice. These are serious concerns and we recognise the need for change. We must look at how the audits of the future match the evolving needs of stakeholders and society and address increasing business complexity. We have continued to invest in training and technology to help our 4,300 audit professionals deliver the highest quality audits and we’re very proud to audit 27% of the FTSE 100.”
David Sproul added: “From an innovation perspective, this was an exciting year as we developed an internal Centre of Excellence for robotic process automation as well as an Artificial Intelligence studio. Both will help businesses, as well as ourselves, improve efficiency and effectiveness at a lower cost. This year also saw the launch of Deloitte Ventures, an advisory service team working with a community of over 100 external start-ups to help businesses solve complex challenges. We’ve done this because emerging technologies are rewriting the rules and changing the way in which business is done, so we’re co-creating and co-investing with leading corporations to build new partnerships, platforms and products.”
Recruitment, talent and diversity
In the last financial year, upwards of 5,000 people joined Deloitte, with nearly 2,000 of them based outside of London. Of the 5,000, over 1,700 were graduates and school-leavers, including 270 BrightStart apprentices, Deloitte’s dedicated programme for school-leavers.
The firm invested close to £40m in learning and development this year, and introduced new formal working arrangements – including annualised days contracts – as part of its agile working agenda. It also continued its mental health support initiatives.
Emma Codd, Deloitte’s managing partner for talent, said: “Since we introduced agile working, the number of formal agile workers has risen by around 30%, from around 850 people in 2014 to over 1,100 today, with 27% of women at or above senior manager level having such an arrangement. Our approach is underpinned by three simple principles – trust and respect, open and honest communication and judging solely on output.”
In conclusion, Codd added: “Deloitte has also continued its long-standing commitment to raising awareness of mental health issues. Working with Mental Health First Aid England, 530 of Deloitte’s senior leaders have completed training to spot the signs of poor mental health and signpost the support available to our people.”
Social impact strategy
Deloitte contributed £5.7 million to charities and social enterprises this year, while also supporting over 340,000 people through the firm’s social impact strategy.
David Sproul commented: “We’re now over two years into our One Million Futures strategy, and almost halfway towards our target of supporting one million people to get to where they want to be through education and employment. Over a third of our people volunteered to support the programme.”