Big Four

Deloitte profits hit £590m in FY21

Revenue for the period also increased by 4% to £4.5bn, with the growth reflecting a ‘strong underlying performance’ from all businesses

Deloitte has revealed that distributable profit for the year ending 31 May 2021 increased by 14% to £590m, up from £518m the prior year.

Revenue for the period also increased by 4% to £4.5bn, with the growth reflecting a “strong underlying performance” from all businesses.

However, the firm was still affected by a decline in billings for expenses such as travel, as the majority of the firm’s people worked remotely during the pandemic.

Meanwhile, average profit per equity partner was raised to £854,000 from £731,000 in 2020 and is expected to have gone up due to the selling of the group’s restructuring practice.

In accordance with the firm’s partnership agreement, the £136m raised from the sale will be distributed amongst the partners.

Across the firm’s UK advisory businesses, consulting had a particularly strong year however, with work on projects across multiple sectors, providing clients with specialist teams in digital technology, procurement, supply chain, logistics, real estate and project management skills, including the government.

The firm also contributed £1.32bn in tax for the year, which comprised £838m of taxes collected on behalf of HMRC (VAT, PAYE and employee national insurance) and £485m of taxes in relation to partner income taxes, national insurance, corporation tax and employer’s national insurance.

Looking ahead, the firm said it will continue to “prioritise developing” its people, supporting its clients, “transforming” their businesses and investing in its communities.

Richard Houston, CEO and senior partner, said: “This year we’ve seen exceptional demand for our digital transformation advice, services in supply chain, and debt advisory as clients looked for our support to overcome the impact of national lockdowns.

“Our highest profile project involved bringing together expertise from across our firm to help design the national testing programme – the largest diagnostics network in UK history. This capability has played a key part in the re-opening of the UK economy after months of national restrictions.”

He added: “The UK is now in a decisive decade as it recovers from the pandemic. Our firm will play its part in addressing societal challenges from digital exclusion to the race to net zero as we help build an inclusive and sustainable recovery.”

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