Deloitte boosts partner pay as profits jump
Deloitte partners are in line for a pay hike this year, despite the current controversy surrounding the future of the Big Four accounting firms.
Average profit per equity partner rose six per cent to £882,000 for the year ended 31 May.
Profit available for distribution rose to £617m, up from £584m in the prior year.
Deloitte said it had benefited from a one-off gain on the sale of an investment, lower provisioning charges and currency gains without which its profits would have been flat.
Read more: Deloitte boosts UK partner promotions by more than 40 per cent
Revenue for Deloitte in the UK and Switzerland grew 10.9 per cent from £3.58bn to £3.97bn.
The audit sector is currently facing unprecedented scrutiny after a series of scandals.
A review by the Competition and Markets Authority (CMA) recommended the introduction of joint audits and an operational split between the audit and non-audit businesses of the Big Four accountancy firms to try and make the sector more competitive and improve audit quality.
Deloitte’s audit and advisory business grew revenue 8.1 per cent to £1.1bn, with audit and assurance accounting for £582m.
Stephen Griggs, managing partner audit & assurance, said: “We are looking at how to adapt the scope of our audit to match the needs of stakeholders and the evolving reporting landscape.”
Former London Stock Exchange chair Sir Donald Brydon is currently reviewing the future of audit.
Griggs said: “We also need clarity about what all parts of society – the public, government, investors, business – expect of an audit and the ongoing Brydon review will provide much needed independent insight.”
The firm’s consulting business increased revenue nine per cent to £952m, financial advisory by 10.5 per cent to £507m and tax & legal by 17.8 per cent to £862m.
Deloitte is the first of the Big Four firms to reports its financial results.
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