BDO has posted an 8.5% increase in revenues to £464.1m from £427.8m last year, while profits went up by 19.7% to £109.4m
In addition, BDO partners saw a 17% rise in average distributable profit to £531,000. This is higher than the £519,000 per partner reported by KPMG in its annual report last December, and marks the first time a mid-tier firm has overtaken one of the Big Four in partner pay.
BDO saw a strong performance across all three of its service lines of audit, tax and advisory. Its audit business posted revenues of £164.6m growing 9.2% on the previous year. It performed particularly well with mid-sized, entrepreneurial businesses as well as stretching its lead as the top auditor for AIM-listed companies.
The tax practice reported growth of 4.9% generating revenues of £141.8m following some significant wins. Growth in this area was driven by increasing awareness from businesses and individuals of the need to be globally tax compliant, the firm said.
BDO’s advisory revenues grew, increasing 11.1% to £157.7m. M&A had a strong year as Brexit jitters failed to materialise with private equity houses and corporates continuing to invest. The transaction services team saw double digit growth and across the rest of the advisory practice, forensics, tax dispute resolutions and valuations all performed well.
Over the year, BDO firm appointed 11 new partners from other firms and promoted a further 14 partners internally. Outside of the partner group, BDO promoted 1,115 people – more than one quarter of its total UK headcount – and recruited another 306 trainees into the business.
The firm said it is adopting a targeted approach to technology and is continuing to focus on automation, analytics and innovation, which includes greater use of robotic process automation. The firm also saw an increase in the use of its audit analytics tools and the internal launch of an idea-creation programme to generate further innovation for clients and the firm.
Paul Eagland, BDO managing partner, said: ‘There is a common misconception that accountancy is primarily focused on numbers. In my experience, our clients buy our people and their expertise. BDO is – and always will be – a business with great people at its core.
‘It’s the hard work, knowledge and tenacity of our people that has provided the foundation for these great results. With plans to increase our apprentice intake next year and more partners from competitor firms making enquiries about joining us, the pipeline of talent that is so crucial for growth will continue to flow into the business.’
Report by Pat Sweet
