Revenue of EY Netherlands grows 5% to 710 million

01 October 2015 Consultancy.uk

Accounting and advisory EY booked revenues of €710 million in the Netherlands over the past financial year, an increase of 5% on the previous year. Net profit too increased, up €9 million. Revenue gains however trail both the global and European average.

With 212,000 professionals and global turnover of $28.7 billion, EY is one of the four largest accountancy and consulting firms in the world. In the Netherlands the firm is also a market leader, and controls, with Big Four rivals Deloitte, PwC and KPMG, the majority of the market.

Yesterday EY, formally Ernst & Young, unveiled that the Dutch arm of the firm had a bumper year. Revenues grew by 5% to €710 million, leaving the crisis years definitively behind the firm (+2% higher than 2008/2009). Although compared to the EMEIA average revenue growth of 11.6%, the Dutch practice still has some work to do.

Revenue development of EY Netherlands

The largest revenue stream increase was in the firm’s Assurance practice, which saw turnover increase €8 million (+3%) to €297 million, due in large part to an increase in the number of billed hours. The result trails global increases, which stood at 8.1%. Tax saw revenue grow by €12 million (+5%) to €253 million, again somewhat behind global growth which stood at 10.3%.

In the consultancy practice – EY Advisory – revenue grew by €8 million (+9%) to €97 million, partly from organic growth, but also through two acquisitions (Centre and CFORS). Growth in Dutch Advisory practice was still considerably behind global growth however, which stood at 17.6%. The Transaction Advisory Service (TAS) unit recovered compared to the year previous, thanks to a better market for mergers & acquisitions, generating revenues of €7 million (+23%), thereby outperforming the firm’s global TAS growth average of 15.5%. TAS accounted for €37 million in the Netherlands, with the remaining €26 million realised by the firm’s Corporate Business Services.

Profit and employees
Despite a 5% increase in operating costs to €556 million the firm still improved on its net profit: up +6% to €147 million from 2013/2014’s €138 million. The average workforce totalled 3,731 FTEs, including 229 partners (the year previous: 3,504 FTEs, 224 partners). The average number of client-serving employees increased by 223 FTEs or 8%.

Employee development of EY Netherlands

Marcel van Loo, Managing Partner of EY in the Netherlands, is “proud” of the fact that the firm has managed solid growth in what he describes as a challenging time, and remarks that this years’ result provides “a stable basis for the future.” Looking to the future he remains cautious. Van Loo speaks of a year “full of challenges”, which will be dedicated to "further quality improvement and cultural change, finding the right people and continuing to discussions with our stakeholders." The CEO concludes: "I am confident that with the tireless efforts of our employees, the support of our international organisation and the feedback from our stakeholders, the coming year will see us take the next step in achieving our ambition: become an international market leader."

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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.