BDO becomes £1bn giant as partner profit recovers
Revenue at BDO, the accountancy and business advisory giant, has surpassed £1bn for the first time in its 100-year history, it has been confirmed.
The London-headquartered firm, which has offices across the country, said its “continued
programme of investment” helped revenue rise by 8.6 per cent to £1.02bn in the year to 5 July, 2024.
The increase comes after BDO invested £120m in the 12 months to June 2023 in a move which reduced its profit per equity partner (PEP) by six per cent.
However, the firm has now revealed that its average PEP jumped by 12 per cent to £681,000 while its operating profit increased by 15 per cent to £227m.
Overall, BDO has invested an extra £250m over the last three years.
The results come after Mark Shaw succeeded Paul Eagland as managing partner of BDO UK on 1 October, 2024. Eagland had completed his maximum of two four-year terms.
Mid-sized firms ‘should be listened to’ – BDO boss
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.
“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.
“These businesses are frequently overlooked and undervalued. It is easy for policy makers to focus on large businesses who naturally have the profile to command attention, but businesses that are mid-market or smaller are a vital part of the UK’s growth story contributing £2.4t of revenues to the economy and 61 per cent of UK employment.
“They are a huge segment of the economy and one that should be listened to”.
In the year to 5 July, 2024, BDO’s audit department achieved a revenue of £433m, an increase of 8.4 per cent on the previous 12 months.
Its tax business also saw a seven per cent rise in its revenue to £241m while the advisory division’s earnings rose by 10.2 per cent to £342m.
During the year, BDO increased its partner headcount from 441 to 466, promoted almost 3,300 people and added over 600 trainees.
Accountancy giant eyeing ‘balanced growth’
Shaw added: “Our people have worked incredibly hard to build what has now become a
£1bn firm.
We remain committed to investing in first-class people and first-class infrastructure. The underlying strength of our firm and the talent of our 8,000 people have put us in a great position for the years ahead to work with businesses across the UK and more widely.
“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.”