Mazars, the international accountancy firm, grew its UK profits by 18.2 per cent in the year to August 31, 2014, it has been announced. The firm’s profit before tax increased to £26.2 million compared to £22.2 million in the previous year.
Overall fee income for the same period was up 8.6 per cent to £130.9 million, marking five successive years of growth and an overall increase in revenues of 28 per cent during the same period. The firm has now recorded fee income growth for nine out of the last ten years.
While robust organic growth continues to constitute a significant proportion of the rise in turnover, merger activity – namely the acquisition of Deloitte’s specialist public sector internal audit business – contributed three per cent towards overall growth. It also positions the firm as one of the country’s leading suppliers of outsourced internal audit and anti-fraud services to local authorities and NHS bodies.
The firm’s advisory service lines experienced significant growth of 22 per cent from £28.2 million to £34.4 million, thanks in particular to strong performance from a number of specialist areas including financial services consulting, project finance and forensic and investigation services.
Audit and actuarial services remain Mazars’ principal generator of fee income: turnover increased by 8.3 per cent from £48.3 million to £52.3 million. The tax practice recorded a slight drop in fee income of 0.8 per cent, from £24.5 million to £24.3 million. Turnover in insolvency and investigation services grew by 2.2 per cent to £19.9 million. The firm’s wealth management business performed very well, seeing funds under management grow by 27 per cent to £376 million over the year.
Phil Verity, UK Senior Partner, said: “The results demonstrate very encouraging progress: our strategy is based on achieving long-term sustainable growth through responding to clients needs, investing and innovating in the markets and areas where we shine, and pursuing the right opportunities as they arise. The significant increase in profitability is testament to this.”
He continued: “This year we have continued to invest in developing the range and depth of skills within our teams – increasing reward to our staff by more than ten per cent – and rolling out a series of people-focused initiatives to help support and build a best in class team. Delivering outstanding quality to our clients will always be our foremost goal; we know that goes hand in hand with seeking out, nurturing and channelling a diverse range of top class talent.”
Alongside the recruitment of several new and highly experienced partners in dedicated client teams such as financial services, investment in people was represented in a number of firm-wide programmes, including national drives focused on diversity and people engagement. Significant resource has also been dedicated to the upgrading and integration of key internal systems.
Following the external recruitment of new teams in Scotland and the East Midlands – numbering over 50 people in total – in the early part of the financial year, the firm opened two new offices, one in Leicester and the other in Perth.
Lee Cartwright, Birmingham office partner, said: “Our growth in the West Midlands has reflected the national success of the firm and Birmingham is now a £10 million revenue per year office.
“This has seen our headcount in the city increase from 90 to 116.”