BDO hits £1 billion revenue milestone in UK for first time

The UK wing of BDO has reportedly hit revenues of £1 billion for the first time. Despite a backdrop of economic uncertainty for Britain causing a slowdown in the wider consulting market, the firm reported growth across all its core business areas.

Commenting on the results, managing partner Mark Shaw said, “In times of change and uncertainty, it makes sense that businesses turn to trusted advisers to guide them. Given our expertise, experience and position in the market, along with continued significant investment in our business, we have recorded a positive set of financial results.”

In many ways, that is a typical attitude in the UK professional services sector – with firms often enjoying a glut of work at a time when many of their clients are struggling. During the Brexit process, and the Covid-19 pandemic, this held true, as organisations unsure of what to do turned to consultants for support. But over the last two years, this trend has ebbed away for BDO’s larger competitors – leaving them with difficult decisions to make about their inflated headcounts.

But in BDO’s case, it seems the firm’s mid-market focus has paid dividends, even as other audit and advisory firms suffer a slowdown in business. The UK wing of the global firm has reported annual revenues of more than £1bn for the first time in its 100-year history – with an 8.6% increase in income buoying the total to £1.02 billion for its latest financial year.

This has also enabled BDO to buck other trends in the sector when it comes to recruitment. Over the last 12 months, it has welcomed over 600 new trainees to the firm, with applications now open for a further 700 to start in 2025 across its apprenticeship, graduate and industrial placement schemes. Alongside this, the firm has promoted almost 3,300 people - its highest number ever, representing almost 40% of the firm’s workforce – taking BDO’s UK partner tally from 441 to 466.

Explaining the business’ key competitive edge, Shaw noted, “BDO’s market heartland remains the UK’s mid-sized businesses. These entrepreneurial, ambitious and growing businesses are the UK’s economic engine; they are driving economic growth and employment. Their success, combined with the capabilities of our people, have led to our success.  

That success for the year-ended 5 July 2024, included solid growth across audit, tax and advisory services. Leading the way on that front was BDO’s advisory practice, with its consulting line enjoying 10.2% growth to hit revenues of £342 million. Still its largest practice, but with slower growth, audit followed with revenues of £433 million, an increase of 8.4% on the previous year, while tax revenues rose 7% to £241 million.

The advisory business – which will now operate as two distinct service lines under Mark Shaw’s leadership saw particularly strong performances in business restructuring, forensic and valuation services and business services and outsourcing. An increase in activity across corporate transactions and within the firm’s growing sustainability and ESG services also looks promising for the year ahead.   

Shaw concluded, “Uncertainty in the UK and across global markets is likely to continue, and so we will not be complacent.  Our heritage allows us to respond effectively to the markets we work in and the businesses we work with. As BDO’s new managing partner, I re-iterate our commitments on diversity and inclusion – including on gender balance, ethnicity and social mobility - and I fully support our programmes in these areas. As we look to the future, we have a clear strategy for balanced growth; growth which puts serving the public interest, doing the right thing, our culture and our people at its heart.”