Deloitte reports robust growth and continues to invest for the future
LONDON -- Deloitte, the business advisory firm, has reported revenues of £2,329 million for the year ended 31 May 2012, an 11% increase on the previous year (£2,098 million for year ended 31 May 2011).
David Sproul, chief executive and senior partner of Deloitte, commented: “This is another robust performance in what continues to be an uncertain economic environment. Last year we took the decision to invest heavily in people and skills, and new solutions such as Deloitte Analytics and Deloitte Digital, in order to enhance and extend the services we offer our clients.
“This investment in our business is reflected in the growth we have achieved across our five business divisions and in all of the major industry sectors in which we operate. We achieved particularly strong growth in our consulting and advisory businesses working with the UK corporate sector, and pleasing results in our Swiss practice.
“As a business leader, I look at the role we can play in driving economic growth and rebuilding economic prosperity across the UK. Investing in skills and talent is a signal of confidence, and critical to supporting our clients at a time when the outlook for all businesses remains challenging. We will continue to build for the future, creating an additional 250 entry level roles for graduates, university students and school leavers in 2013.”
“We are extremely proud of helping deliver the London 2012 Olympic and Paralympic Games in our capacity as official professional services provider. By the end of the Games, over 750 of our partners and people will have provided over 750,000 hours of expertise to help make London 2012 happen.”
The firm achieved strong performance in each of its business divisions. Audit grew by 13% to £663 million (£586m in 2011), Tax by 7% to £529 million (£496m in 2011), Consulting by 14% to £524 million (£460m in 2011), Corporate Finance by 6% to £402 million (£381m in 2011), and Switzerland by 21% to £211 million (£175m in 2011).
Profit distributable to partners for 2012 was £569 million, compared to £535 million in 2011. The average profit earned by each partner in the year, after providing for pensions and annuities payable to retired partners, was £789,000 compared with £758,000 last year.
Investing for the future
Deloitte promoted 63 new partners and hired 43 direct entry partners from competitors and industry over the past 12 months. This represents an important investment in the future success of our clients.
The firm recruited 1,118 graduates and also 38 school leavers, starting them on the route to a professional degree level qualification. The firm invested £24m in learning and development, enabling more than 750 of our people to achieve a professional qualification. In addition, Deloitte supported hundreds more students through scholarships and internships, many of whom will go on to join the firm.
Looking ahead, Deloitte has 1,750 entry level places available for school leavers, students and graduates in its 2013 intake, an increase of 250 positions from last year. This will include 1,200 graduate roles, cementing Deloitte’s position as one of the UK’s top three graduate recruiters.
As official professional services partner to the London 2012 Olympic and Paralympic Games Deloitte has provided over 130 secondees and 200 advisory projects to the Organising Committee and, in all, will have contributed more than 750,000 hours of expertise to delivering the Olympic and Paralympic Games.
By the time the third annual Deloitte Ride Across Britain cycle challenge takes place in September, it will have raised more than £1m for the British Paralympic Association. We have supported more than 300 disability athletes through our support for the Talented Athlete Scholarship Scheme (TASS), and 76 members of the ParalympicsGB team competing at London 2012 will have been supported by Deloitte.
UK business and economic outlook
David Sproul commented: “As the UK enjoys the spotlight and feel good factor of London 2012, we are all aware that away from the glare of publicity, the economic picture isn’t so rosy. The same energy, drive and creative ambition used to win and deliver the Olympic Games is needed to create a new era of prosperity for the UK.
“I believe it is time for business to step forward. UK corporate cash reserves of some £750 billion; low levels of public trust in big business; an eastward shift in global demand; and record levels of public and personal debt all point to the need for a recovery that has to be corporate-led.
“At Deloitte we are focussed on how we can help corporate Britain unlock opportunities to meet near-term growth targets and put UK living standards back on track. For instance, we are working with a number of clients to leverage their balance sheets as a way of helping smaller firms in their supply chains find the capital to invest. In addition, we have launched a Social Innovation Pioneers scheme, through which we will pair our best experience with 30 social enterprises to provide £1.5m of tailored support to help accelerate their success.
“It is time to move beyond identifying the weaknesses in our economy, and start developing responses. To do this and confront ongoing headwinds and uncertainty, corporate Britain must put in a gold medal performance in creating a new era of wealth creation.”
Deloitte Annual Report
Just as business holds many of the cards that need to be played to kick start economic growth, it must also rebuild its relationship with society and better communicate its contribution. With this in mind, Deloitte’s annual report this year will focus on the economic, social and environmental contribution the firm makes to the UK, and set out our ambitions and plans to enhance our impact in the future. The 2012 report will be published in the autumn.