Accountancy and business advisory firm BDO LLP, which has offices in Birmingham, Leicester and Nottingham, has announced double digit growth in profits as investment in talent and technology pays off, according to its annual results, published this week.
The firm, which has exceeded the £400m revenue mark for the first time, reports underlying revenues of £405m for 2015/16 – an increase of 3.8% compared to £390m last year.
The firm continues to make significant progress in profitability too. BDO’s profits grew 22% to £80.3m compared to £65.6m last year. As a result, average profits per equity partner (PEP) increased by 29% to £360k.
Across the business, BDO has made more than 500 promotions in the last year and saw 700 trainees move up the ranks through its graduate and school leaver programmes.
Paul Eagland, managing partner at BDO LLP, says: “The results are testament to our partners and people who have worked diligently and passionately over the course of the year helping our clients succeed. The increase in profits reflects a return on the firm’s investment and ongoing focus on sustainable, profitable growth.”
Growth across the business
BDO’s audit arm increased revenues with a changing regulatory market creating new opportunities among its high growth, entrepreneurial client base. Revenues increased by 8.3% to £143m compared to £132m last year.
The firm’s tax business continued to expand, following 20% growth the previous year. The team, which now has revenues of £126m (compared to £119m last year), continues to invest in talent to meet client demand with seven new tax partners joining the firm during the summer.
BDO’s advisory revenues held steady at £136m. Its business recovery, forensic, valuations, tax investigations and global outsourcing business areas have all performed well. For the fifth year running, BDO is the leading reporting accountant for AIM IPOs.
Richard Rose, partner and head of BDO in the Midlands, comments on the results saying: “The ambitious and high-growth businesses we work with in the region and across the country – many of which are in the mid-market, AIM-listed or PE-backed – have continued to succeed despite uncertainty in global markets, the EU referendum and government changes at home. This, in addition, to significant regulatory changes has created opportunities for both BDO and our entrepreneurially-spirited clients.”
Investment in people and technology
BDO has promoted 538 people from within the business and welcomed 334 new trainees, including 66 on its award-winning school leaver programme. It is also set to recruit 25 new partners to the business in the next 12 months.
Driving profitable growth is at the centre of its investment in technology and innovation. The development of global web-based audit tool, BDO Advantage – a data analytics tool – and its UK cloud accounting service BDO InTouch, which launched last year and has already expanded into Australia, New Zealand, South Africa, has seen the firm reap the rewards.
The firm has recently also announced a worldwide strategic alliance with Microsoft to accelerate its ongoing digital transformation.
Richard adds: “The people we attract and the technology we deploy is changing the face of accountancy at rapid speed. We are investing heavily in these advances to add even more value to our clients, but importantly we’re doing them in areas and market segments we understand and believe in.”
Supporting the economic engine
BDO works for a third of FTSE 350 companies in an advisory capacity but remains committed to its mid-market, private equity, AIM-listed, high-growth heartland.
UK managing partner, Paul Eagland, concludes: “Our clients represent the UK’s economic engine. They are ambitious, entrepreneurial, high-growth businesses that fuel the UK economy.
“Developments in technology and regulation, an uncertain relationship with the EU and the increasing pace of globalisation means that many of the boundaries that once governed the way organisations do business are changing or disappearing altogether. There are exciting times ahead and we look forward to helping our clients navigate new and unfamiliar territory.”
Global network
Globally, BDO’s international network continues to go from strength to strength. In its last financial year, the network grew by nearly 13% through both organic and acquisitive growth, reporting revenues of $7.3bn and employing 64,500 people across 154 countries.
