BearingPoint revenues grow 10% on back of expansion strategy

24 February 2017 Consultancy.uk

BearingPoint has seen its revenues grow 10% last year to €622 million, on the back of organic growth and expansion into new markets, including Singapore, Portugal, Romania and the Czech Republic. The international consultancy, which aims to breach the €1 billion mark by 2020, continues to hire aggressively and develop key talent.

BearingPoint, a Europe-based management and technology consulting firm founded in 2009 following a management buyout of part of the in 2002 founded KPMG Consulting, recently revealed its consolidated accounts for 2016. Global revenues rose by 10% on the year previous, to €622 million. The firm, headquartered in Amsterdam, the Netherlands, also saw its net booking grow by 13%, year-on-year.

The result is in line with the firm’s longer term strategy to break the €1 billion in revenues barrier by 2020. In a statement, Peter Mockler, Managing Partner of BearingPoint, highlights that the firm realised "positive revenue trends" across all its service lines and industrial segments.

The firm has also continued to expand its operations during 2016, adding new offices in Singapore, Portugal, Romania and the Czech Republic. The company, specialised in management consulting and IT consulting, is now present in 22 countries, with a total of 36 offices – offering its services, together with its global consulting network, to clients in 75 countries globally.

Global revenues of BearingPoint

The strong performance in the most recent financial year has seen the firm invest in further growing its capabilities in key growth areas, including in the areas of digital, ecosystem management and regulatory technology (which sits within the Solutions arm). As part of the capability deepening, BearingPoint struck several partnerships over the past twelve months, among others with GE Digital to support clients with Industry 4.0 and (Industrial) Internet of Things technology, and with the CoSMo Company to support utilities deal with a rapidly evolving sustainability landscape.

Mockler, now in his third term, remarks: “Our strategy is paying off. I am very happy with the two-digit growth and the overall development of our firm." He adds that the strong results are no surprise to the firm's leadership team, stating "Another record year – the combination of consulting, solutions and ventures, and our focus on digital ecosystem management and regulatory technology, is the right set-up."

As part of the drive, BearingPoint recently restructured its top-tier leadership structure, introducing three regional leaders (Iris Grewe, Kiumars Hamidian and Marcel Nickler) to support execution. The firm also saw its CFO role change hands – Dolf Smeets, a company veteran who retires this year, has been succeeded by the German Andreas Flach.

Looking ahead, Mockler adds that to achieve the €1 billion milestone the business advisory will accelerate its recruitment efforts for key talent and the further development of its staff. "Our strong development gives us the possibility to invest further in top talent and drive innovation worldwide. We are confidently looking ahead, and we will further strengthen our position as an independent, partner-led management and technology consultancy."

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PA Consulting results reveal record 14% revenue growth

17 April 2019 Consultancy.uk

Global professional services firm PA Consulting has reported another year of strong growth, outpacing the global consulting market significantly over the duration of 2018. PA’s revenue boomed by 14%, passing £455.8 million over the course of the year.

Founded in 1943, by Englishmen Ernest Butten, Tom Kirkham and David Seymour, the firm once known as Personnel Administration has since gone on to become one of the largest consulting firms in the world. PA Consulting Group, as it is now known, has over 2,600 professionals and a global presence spanning 18 countries. While turnover took a decade to recover from a rocky spell after the global financial crisis, PA Consulting is now firmly on the upward incline.

PA has booked strong growth in recent years, following its securing of private equity investment from the Carlyle Group in 2015. While the first full year of results following that move were slightly muted, due in part to the altering of how PA measured its results, the decision has clearly paid dividends since. Revenues jumped by 6% in 2017, hitting an all-time high of £400 million in the process.

Annual consulting revenues of PA Consulting versus UK market

Now, in the latest chapter of the firm’s rapid turnaround, the innovation and transformation consultancy has revealed things only got better in 2018. A set of record results released in April have confirmed that fee income rocketed up by 14% over the course of the prior 12 months, hitting £455.8 million. Considering the UK’s consulting market saw growth slow for the second year running (just 5.6%), PA’s performance is even more pronounced, especially in its first year of full results since influential Chair Marcus Agius stood down. 

The firm is also outpacing the global consulting market. Analytics firm Statista estimates that the consulting market expanded by 4.08% in 2018. As a result of such bullish demand, PA Consulting has also bolstered its staffing, boosting its consulting team’s headcount by 10% in the space of 12 months. 

PA’s team was further strengthened with its continued acquisition campaign, which brought three new firms into the fold during 2018. Boston-based innovation company Essential Design, specialist digital service design firm We Are Friday and London-based digital insight and strategy consultancy Sparkler all became part of PA over the course of the year. PA has also announced plans to recruit 400 professionals for its new digital centre in Belfast. 

‘Not traditional’

In terms of client work, in the UK PA supported Skipping Rocks Lab to create an edible alternative to single use plastic drink packaging, and worked on a notable restructuring project at disability charity Scope. Further afield, PA helped Norwegian authorities deliver their citizen-facing digital services, while in the US and India, PA partnered with Virgin Hyperloop One to build the first new mode of transport in a century, one that hopes to revolutionise travel. It even worked with United Nations to identify the technologies most likely to contribute to the achievement of the organization's Sustainable Development Goals.

Commenting on the year’s performance, Alan Middleton, PA Consulting CEO, said, “We’re not a traditional consulting firm and we think this is key to our ongoing success and why 98% of our clients recommend us… Our people are strategists, technologists, digital experts, consultants, designers, scientists and engineers – all of whom bring real-world experience, and apply it at pace. We offer the innovation, design, digital and transformation skills that our clients need to change, fast. There’s a sense of optimism behind our purpose. And it’s a feeling that inspires our people as well as our clients.”

The existing staff of PA also enjoyed a bumper year, as it was revealed that a refinancing manoeuver at the firm was expected to land over 1,000 employee shareholders a significant pay-out. The firm’s debt, which includes vendor loan notes put in place when Carlyle purchased the firm, is set to be refinanced in a deal worth £350 million.