BDO revenues surge after its tie-up with PKF
29 November 2013 1:13am
ACCOUNTANCY group BDO posted a 10 per cent rise in revenues today as last year’s merger with PKF has helped to swell the company’s client list.
The firm, which works with mid-market corporate clients, said turnover in the year to July was £312m, while underlying profits rose six per cent to £55m. Average profit per partner was flat at £240,000.
Audit income rose 16 per cent to £111m, beating a steady overall market, while tax income was up eight per cent to £86m and advisory work brought in £115m, eight per cent up on last year.
The tie-up with smaller rival PKF completed in April and “the combination of the companies is creating new spaces for us”, managing partner Simon Michaels said.
“In terms of new work, with the economy coming back again we have seen prospective clients looking to do more things, both in audit and advisory and tax,” he told City A.M. yesterday.
BDO expects the group’s revenues to grow 20 per cent to almost £400m next year, to reflect a full year with PKF as well as plenty of new work in the advisory business, which currently works with a third of the FTSE 350.
As well as 1,000 staff absorbed from PKF, the firm aims to increase its headcount by seven per cent next year, through hires from rivals and an expanded graduate and school-leaver scheme.
“The biggest [recruitment] challenge we’re finding is industry – as industry invests in growth some people are looking outside the firm for opportunities. But many more people see their future in the profession,” said Michaels.