EY UK has performed strongly over the past fiscal year – the accounting and consulting firm saw its revenue increase by 8.6% to £1.868 billion. All business units managed to grow, with Advisory the strongest performer, and following 15% growth, the consulting unit has overtaken Assurance as EY’s most important practice in the country.
Over the past fiscal year, which ended 27 June 2014, EY has reported a turnover growth of 8.6%, from £1.721 billion last year to £1.868 billion this year. Assurance grew by 8.5% to £550 million, driven by high demand across the firm’s Audit business, Fraud Investigation and Dispute Services and Financial & Accounting Advisory Services. Transaction Advisory Services (TAS) grew by 5.9% to £289 million – with the resurgence in private equity and IPO activity as key drivers – and Tax booked a 3.3% increase. As has been the case at all of the major professional services firms in recent years, Advisory was the star performer, growing by 15% to £559 million with good growth across all sectors.
According to Steve Varley, EY’s UK Chairman, the growth is the result of the firm’s “deep local connections in each of its 21 offices in the UK”, combined with its global strength, providing the advisory firm with a “significant competitive advantage.” In addition, he highlights that EY is now reaping the benefits from its decision to continue investing in talent and infrastructure during the ‘crisis-years’.
For EY, consulting has now become the most important business unit in terms of size, overtaking Assurance for the first time in more than a decade. The trend is not new though – over the past years Advisory has consistently been the best performing unit, and not just at EY, also rivals Deloitte, KPMG and PwC have been witnessing similar patterns. A recent analysis from Consultancy.uk shows that between 2008 and 2014, EY Advisory has nearly doubled its global business, growing by more 71%, much stronger compared to the three others practices. Overall, Advisory now accounts for 24% of EY’s total revenue, the lion’s share (41%) of turnover still comes from Assurance.
Other key milestones achieved over the past year for EY UK include the addition of 68 new equity partners, the launch of EY Foundation* and and several awards, including being nominated the #9 best Employer for Apprenticeships, a #11 position in the Times Top 100 Graduate Employers and a #4 position in Europe's Most Attractive Employers 2014.
Looking forward, Varley, comments: "Even though there is a degree of political uncertainty in the UK, I do feel positive about the health of the economy and the opportunity this gives businesses to grow. At EY, our global strategy means we have exciting times ahead and I am confident that this strategy will help us help our clients grow in the UK and internationally."
* EY Foundation aims to help young people find alternative routes into employment and education and to support social entrepreneurs and start-ups.