Accounting Firms

EY reports growth in full-year results

EY has reported that UK fee income rose by 5% to £2.6bn in the financial year ending 3 July 2020, up from £2.45bn the previous year.

The firm noted that this year’s financial results benefited from 53 weeks of results compared to 52 weeks in 2019.

While its consulting practice declined in previous years by 4.7%, its tax business grew by 8.1%, while assurance rose by 7.8%.

Distributable pre-tax profits also increased from £477m in FY19 to £479m in FY20.

Nonetheless, average profit per partner decreased from £679,000 in 2019 to £667,000 in 2020 amid the effects of the pandemic.

Furthermore, 10% of the partner profit distributions were withheld to bolster the firm against future Covid-19 uncertainty.

Hywel Ball, EY’s UK chair, said: “At a time of intense disruption, our focus has been, and will continue to be, on doing the right thing for our people, our clients and our business.

“We have grown significantly while continuing to invest across the region, progress our ambitions on social mobility and diversity, and support the well-being of our people during what has been a difficult time for many.”

She added: “The first nine months saw a strong period of trading. COVID-19 dramatically changed the business environment during the last quarter of our financial year but we continue to take prudent steps to ensure we are well positioned for the future.

“We have however not used the Government’s furlough scheme or lending facilities.”

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