BDO breaks through £400m revenue barrier and hikes partner pay
Partners at accountancy firm BDO will be celebrating bumper pay packets today after it was announced that they'd be receiving a 29 per cent increase in average earnings.
BDO revealed its full-year results for 2015/16 today and unveiled revenues that had smashed through the £400m mark – at £405m they were 3.9 per cent more than the previous year.
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Growth in profits was much higher – up 22 per cent to £80m – and drove the rise in the return to partners. The news that partners would receive an increase to an average of £360,000 contrasted a fall in average partner pay at Big Four competitor PwC. Deloitte's partners received a more modest 2.5 per cent hike in results announced in August.
Newly crowned managing partner Paul Eagland described the annual performance as "testament to our partners and people".
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Eagland also gave an insight into what had driven the increase in profitability.
"The increase in profits reflects a return on the firm’s investment and ongoing focus on sustainable, profitable growth. Significant regulatory changes has created opportunities for both BDO and our entrepreneurially-spirited clients," he said.
BDO's tax business grew revenues by 20 per cent and its audit division by 8.3 per cent. While its advisory business' revenues were static year-on-year, the firm highlighted that it is the leading reporting accountant for Aim IPOs – a particularly important point given that six of the seven listings in the third quarter of this year have been on London's junior stock exchange.