EY global revenue jumps 11 percent to 28.7 billion

16 September 2015 Consultancy.uk

Last year was a strong year for professional services firm EY. The accounting and consulting giant realised combined global revenues of $28.7 billion, an increase of 11.6% compared to the previous fiscal year. EY experienced growth in all four geographic areas, as well as all four service lines, with Advisory again the strongest performer.

Financial data released by EY shows that FY15, which ended on 30 June 2015, has been a strong year for the firm. Following a good FY14, when the firm saw its revenue increase of more than 6%, the firm again managed to increase its profit. FY15 saw EY’s revenue jump 11.6% to $28.7 billion, which represents the firm’s fastest growth since 2008.

EY - FY2015 global results

The firm experienced growth in all four geographic areas. The strongest increases are seen in the Americas at 12.3%, the EMEIA (Europe, Middle East, India and Africa) at 11.6% and the Asia-Pacific at 11.2%. Practices in the US, UK, Germany, Italy and Australia – which all saw double-digit growth – boosted the growth in the developed markets. EY’s revenue in emerging market practices’ was up by 12.3% – compared to 8.7% in FY14, growth that was particularly driven by revenue from its practices in India (up 19.7%), Mexico & Central America (up 17.3%) and the Middle East & North Africa (up 14.7%).

For EY, the biggest driver of growth was again its Advisory service line, which grew 17.6% – up 3.2% from its FY14 growth – to $7.3 billion. The second biggest increase is seen in the firm’s Transaction Advisory Services (TAS) service line, which grew 15.5%, compared to 6.5% last year, reaching $2.5 billion. Assurance, which still holds the firm’s biggest revenue share, grew by 8.1% to $11.3 billion and Tax managed to boost revenue by 10.3%.

EY - Service line growth

“This year we realised strong gains across both developed and emerging markets, despite volatile conditions in many individual markets and a slowing global economy. We are proud of this year’s results, which saw fast-paced growth across all of our businesses and in each geographic area,” comments Mark Weinberger, Global Chairman and CEO of EY.

Nancy Altobello, Global Vice-Chair of Talent at EY, adds: “Our growth is a result of our people and their ability to deliver exceptional, high-quality service around the world. Our purpose – building a better working world – has helped us attract, retain and engage the most talented people around the globe – people who share our belief that by asking better questions we can get to better answers and build a better working world.”

EY global headcount

In FY15, EY’s headcount grew to 212,000, which not only is an increase of 23,000 over last year, but also presents the largest headcount of all-time for the firm. Last year also saw the firm’s largest number of partner promotions since 2008; 753 people got promoted to Partner, of which almost third (31%) were women and 33% from emerging markets.

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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.