Accounting and advisory EY booked revenues of €710 million in the Netherlands over the past financial year, an increase of 5% on the previous year. Net profit too increased, up €9 million. Revenue gains however trail both the global and European average.
With 212,000 professionals and global turnover of $28.7 billion, EY is one of the four largest accountancy and consulting firms in the world. In the Netherlands the firm is also a market leader, and controls, with Big Four rivals Deloitte, PwC and KPMG, the majority of the market.
Yesterday EY, formally Ernst & Young, unveiled that the Dutch arm of the firm had a bumper year. Revenues grew by 5% to €710 million, leaving the crisis years definitively behind the firm (+2% higher than 2008/2009). Although compared to the EMEIA average revenue growth of 11.6%, the Dutch practice still has some work to do.
The largest revenue stream increase was in the firm’s Assurance practice, which saw turnover increase €8 million (+3%) to €297 million, due in large part to an increase in the number of billed hours. The result trails global increases, which stood at 8.1%. Tax saw revenue grow by €12 million (+5%) to €253 million, again somewhat behind global growth which stood at 10.3%.
In the consultancy practice – EY Advisory – revenue grew by €8 million (+9%) to €97 million, partly from organic growth, but also through two acquisitions (Centre and CFORS). Growth in Dutch Advisory practice was still considerably behind global growth however, which stood at 17.6%. The Transaction Advisory Service (TAS) unit recovered compared to the year previous, thanks to a better market for mergers & acquisitions, generating revenues of €7 million (+23%), thereby outperforming the firm’s global TAS growth average of 15.5%. TAS accounted for €37 million in the Netherlands, with the remaining €26 million realised by the firm’s Corporate Business Services.
Profit and employees
Despite a 5% increase in operating costs to €556 million the firm still improved on its net profit: up +6% to €147 million from 2013/2014’s €138 million. The average workforce totalled 3,731 FTEs, including 229 partners (the year previous: 3,504 FTEs, 224 partners). The average number of client-serving employees increased by 223 FTEs or 8%.
Marcel van Loo, Managing Partner of EY in the Netherlands, is “proud” of the fact that the firm has managed solid growth in what he describes as a challenging time, and remarks that this years’ result provides “a stable basis for the future.” Looking to the future he remains cautious. Van Loo speaks of a year “full of challenges”, which will be dedicated to "further quality improvement and cultural change, finding the right people and continuing to discussions with our stakeholders." The CEO concludes: "I am confident that with the tireless efforts of our employees, the support of our international organisation and the feedback from our stakeholders, the coming year will see us take the next step in achieving our ambition: become an international market leader."