RSM International revenue jumps 18% to 4.4 billion

13 January 2015 Consultancy.uk

Global audit, tax and consulting network RSM International has experienced strong growth in fiscal year 2014. The network saw its revenue grow with 18% to $4.4 billion, an increase driven by its income fees in audit and accountancy, although consulting fees grew the most with 57%. The network’s headcount also grew 17% to nearly 37,500 staff, as it added 9 new member firms.

RSM International is the seventh largest global network of audit, tax and consulting firms and correspondents in the world. The network that was established in 1954, has returned to impressive growth in 2014 following a challenging 2013, and saw its global fee income grow with 18% year-on-year to $4.4 billion in the fiscal year (FY) ending 31 December 2014. The biggest increase in fee income was generated in in Europe, where the network experienced an increase of 79%, primarily the result of the addition of the former Baker Tilly network in the UK. Latin America enjoyed a grrowth of 22%, followed by 13% in Africa, 9% in Middle East and North Africa, 8% in North America, and 2% in Asia Pacific.

Revenue development of RSM International 
The sector that experienced the largest fee income growth was consulting/advisory, which grew with 57% to $838 million. Audit and accountancy fees, however, which increased with 17%, still generated the most income ($2.2 billion). Commenting on the results, Jean Stephens, CEO of RSM, says: “We have had a very strong year. We have driven growth in all continents and across all our sectors. These results can be attributed to our focus on strategies for continued consolidation, our advanced client-growth programmes for providing seamless services across borders, and our uncompromising attention to providing the highest possible quality services to our clients.”

Revenue destribution of RSM International

In addition to an increase in revenue, the network also experienced a rise in the number of member firms, adding nine new member firms across four continents: Benin, Burkina Faso, Cameroon, Ghana, Uganda, Myanmar, Estonia, the UK, and Panama. The network now covers 112 countries, and saw its headcount increase with 17% to nearly 37,500 staff working across 732 offices. Stephens concludes: “We are in a strong position as we begin this New Year. The quality of clients and people we are attracting is world class. The network is energised by our achievements and we are looking forward to continuing this drive to bring further growth and success to our member firms and their clients during 2015.”

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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.