Strong revenue growth for rebranded EFESO Consulting

04 December 2015 Consultancy.uk

EFESO Consulting has gotten off to a flying start under its new brand. Two months after rebranding from Solving Efeso, the global management consultancy has seen its revenues grow by 12% to €16.5 million, compared to the same period last year.

With more than 480 consultants across 30+ offices in Europe, the US, South America, the Middle East, Africa and Asia, EFESO Consulting is one of the larger management and business consulting firms of the globe. The business advisory focuses mainly on services in the area of strategy, operations and human capital.

Between 2007 and just under two months ago, the consultancy operated under the Solving Efeso brand, following the merger between the French Solving and Italian Efeso in the summer of 2007. Eight years down the line, the firm’s management team decided to rebrand the firm, with EFESO Consulting unveiled as the new brand, formally adopted on 16 October this year. “With our new name EFESO Consulting, we are seeking to highlight one of our distinguishing features. Namely, our ability to put strategy into action, to coordinate complex global transformation programmes with all employees mobilised on behalf of our clients so that, in tandem with our teams, they take ownership of the dynamics of change and work towards the same objective,” said Filippo Mantegazza, who founded Efeso in 1979 and now serves as Chairman of EFESO Consulting, in a statement accompanying the rebranding communiqué.

In its first published results since the name change (the firm is stock listed on Alternext Paris), EFESO Consulting has re-confirmed the growth trajectory it first embarked on a few quarters ago. In Q3, EFESO Consulting achieved revenues of €16.5 million, an increase of 12.2% compared with the third quarter of 2014, while its revenue for the 2015 financial year to date now stand at €53.8 million, up 13.7% in comparison with the first nine months of last year.

Across the board results are mixed however. In Europe total fee income grew by 15% to €11.4 million, driven mainly by the acquisition of Empact in Belgium* (which added €1.5 million in revenue), and growth outside France, the firm’s home-base and largest market (accounts for roughly 20% of global revenue). In Spain, the strong growth in revenue (59%) relates to a large-scale project that began in the third quarter of 2014 and still is running, while following several quarters of decline, revenue in Italy has been stabilised on the back of several measures taken in late 2014.

Business grew strongly in the Middle East (83% growth), particularly in the Gulf states, but fell in Russia, and looking ahead Mantegazza says Russia will remain a challenging market due to the country’s falling attractiveness for foreign direct investment. Income in North America, which accounts for a 15% share of EFESO Consulting’s portfolio, contracted by 3% in comparison with Q3 of the previous year, partly due to fierce competitive environment, says Mantegazza, and the suspension of a large project.

For the months to come, the CEO says the firm is well positioned to maintain its growth momentum. “In light of the positive signs in the market and the continued growth in revenue over the third quarter of 2015 and the diversity of its growth drivers, both geographic and sectoral, the Group re-confirms its 2015 objective of outperforming the consultancy market and maintaining higher growth in operating profitability than in sales.”

Two weeks ago, another large French-origin consulting firm, Solucom, made the headlines in the consulting industry after it unveiled it is close to acquiring a large share of Kurt Salmon.

* Empact has since been rebranded as Efeso Consulting Belgium.

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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.