Audit, tax and advisory firm RSM has grown its UK revenues by 26% to £292 million. The revenue surge of more than a quarter follows a major UK subsidiary rebrand, completed in October, as part of RSM International’s global brand harmonisation strategy.
With around 3,400 partners and staff, working across more than 30 offices across the UK*, RSM is the seventh largest accountancy and business advisory firm in the UK.
Its latest financial figures reveal that the firm has enjoyed a bumper year, with revenues up by 26% to £292 million for the year to 31 March 2015**. All service lines showed double-digit growth, with Consulting the clear-cut top performer. The firm’s business advisory business grew its fee income by 195% to £8 million. The largest service line – tax and advisory – grew by 10% to £121 million, followed by audit and assurance, which saw its revenue increase by 15% to £76 million. The two financial advisory divisions, restructuring and corporate finance, booked a growth of 69% and 29% respectively, taking their total income to £44 million and £21 million. Risk assurance nearly doubled in size, adding 86% in revenues, bringing it to a total of £22 million.
The revenue growth has too found its way to bottom-line performance, with profits of RSM UK Group up by 39% to £45 million, while consolidated UK company profits grew by more than half to £19 million. In addition, the average Group LLP partner (member) profit rose by 10% to £362,000.
Laurence Longe, RSM’s UK managing partner, says “This year’s record financial results for the firm show not only the full impact of the absorption of the former Tenon business, but also reflect underlying organic growth in multiple revenue streams following the successful completion of the strategic restructuring of the firm.” Looking ahead, RSM’s UK boss says that the major structural developments the firm has concluded over the last two years (relating among others to the move from Baker Tilly to rival RSM), along with the launch of the new global brand, have laid the foundations for “RSM to truly become the first-choice adviser to middle market leaders.”
2015 has across the board been a good year for accounting and consulting firms. Earlier this year rival EY for instance also unveiled strong results. The Big Four firm saw its fee income grow by 8% to £2.010 billion, for the first time in its history taking it through the £2 billion barrier.
* RSM has offices in among others Gatwick, Birmingham, Bristol, Derby, Leicester, Hull, Chester, Liverpool, Leeds, Manchester, Milton Keynes, Nottingham, Newcastle, Preston, Reading, Stoke, Southampton, Basingstoke, Chelmsford, Swindon, Basingstoke, Bury St Edmunds, Cardiff, Guildford, Telford and Tunbridge Wells.
** The figures reflect a full year’s contribution to RSM’ revenues and profits of the former Tenon business acquired in September 2013.