RSM grows UK revenues by 9% to £319 million

29 December 2017 Consultancy.uk

RSM has increased its revenues by 9%, hitting £319 million by the end of 2017. The firm’s income for Consulting, Human Resource and Legal Services jumped 46.6% to almost £16 million, while tax and advisory increased by 8.6% to £138 million.

Global mid-market professional services network RSM has 35 offices across the UK. Late last year, the firm witnessed its presence in the country expand significantly in recent years, through the acquisition of Northern Irish counterpart RSM McClure Watters as well as wider organic and inorganic growth.

The firm has since recorded another solid year of growth, with revenues increasing by 9% to £319 million, on last financial year, ending 31 March 2017. Growth was led by its Consulting, Human Resource and Legal Services, which saw revenue jump up by 46.6% to near the £16 million mark. Risk assurance, meanwhile saw an increase of 14.6%, to £25 million. Tax and advisory, the firm’s largest practice, saw a more modest increase of 8.6% to £138 million.

RSM London

The firm’s restructuring advisory service arm also saw a solid 9.6% increase to £39 million, while audit and assurance grew by a more modest 4.8% to £77 million. The firm’s corporate finance practice saw a 1% increase to £24 million. RSM’s consolidated UK company profits meanwhile surged by 16% to £5 million, while profits of RSM UK Group were up 15% to £49 million.

The professional services firm’s growth has been boosted by a solid year for the mid-market segment across the UK. The segment, which represents 0.6% of the UK business population generated around 15% of total UK business turnover. The segment has, since 2000, seen its number increase by 26%.

The company also boosted the UK’s employment rates, which hit a 40 year high, as RSM saw staffing numbers increase by 4% to close to 3,500 employees – with remunerations for partners and staff increasing by 11% to £202 million. The firm further offer dividends to active and retired staff and partners to the tune of £3 million – a 4% increase on the year previous.

Commenting on the figures, Laurence Longe, RSM’s Chief Executive Officer said, “This year’s excellent financial results very clearly show the commercial benefit of the major investment that has been made in first reshaping and then rebranding the firm following the absorption of the former Tenon business in 2013. Significant underlying organic growth in multiple revenue streams in 2017 is now making its contribution to RSM achieving its long term strategic objective of becoming the first-choice adviser to middle market leaders, globally.”

Last month, Big Four rival EY reported strong growth in revenue and headcount across UK and Ireland.

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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.