BDO revenue soars over £900m but investments sting its PEP
BDO’s revenue increased 16 per cent over the 2022/23 financial year as revenue soared to £935m across all “areas of the business”, but profit per equity partner had a slight downturn.
The firm’s PEP was down 6 per cent to £609,000 it blamed increased headcount and a £120m investment it made over the year.
The firm has three areas of business, audit, tax and advisory. Its audit business revenue rose by 24 per cent to £400m, while its tax business was up by 13 per cent to £225m. BDO’s advisory revenues have a smaller growth of eight per cent to £310m.
The firm grew its operating profits by five per cent to £198m.
Last November, the firm had a hiring spree as it invested £70m into hiking salaries, promoting 3,000 people internally, and hiring 1,000 new staff in a drive that saw it boost its headcount from 6,000 to 7,000 people. Over the last financial year, BDO stated it hired 500 new people.
Paul Eagland, managing partner at BDO said: “Despite the challenging market conditions, our revenues have continued to grow and have trebled over the last ten years. With this growth, we are investing to ensure BDO’s future is secure and sustainable.”
As part of its five-year strategic plan, the firm has been heavily investing in itself with £200m over the last two years and £120m in the last year.
BDO now employs 7,500 people, up from 7,000 last year. Its partnership now stands at 441 after hiring or promotion, making it the largest partnership it has ever been.