Accounting FirmsBusiness

BDO returns to pre-Covid growth in FY21

Total gross revenue for the firm’s audit, tax and advisory areas went up by 11% to £731m in FY21 and BDO now reportedly audits more UK listed businesses by number than any other firm.

BDO has announced that it has returned to pre-Covid levels of growth with pre-tax profits surging 48% to £203m for the financial year 2020/21, compared to FY20 and 22% compared to FY19.

It said all areas of the firm, including audit, tax and advisory, “performed well” this year with an 11% increase in gross revenues to £731m in FY21.

Additionally, BDO’s audit business posted revenues of £276m which is up 12% on the previous year. BDO’s said the rise in revenue is due to the firm’s “expertise in AIM and a desire from main market businesses to get ahead of market reforms”, which saw the firm increase the number of listed companies it audits.

BDO’s tax business generated revenues also increased 4% to £194m, with tax compliance and risk advisory services in “increasingly high demand”.

Meanwhile, advisory revenues grew by 15% to £261m which the firm said is driven by its “strong sector expertise”.

BDO said the growth was impacted by downward pressure on operational costs, such as travel, which “naturally declined” due to the pandemic.

Throughout the year, the firm recruited 1,200 people, including 500 apprentices. BDO now reportedly audits more UK listed businesses by number than any other firm.

Paul Eagland, managing partner at BDO LLP, said: “As the economy started to settle, post Brexit and with the roll-out of the vaccine programme, we experienced an increase in demand for our services. This demand, coupled with the tenacity and hard work of our people, and cost savings in areas such as travel, has enabled us to post a strong set of financial results.

“While a number of our clients have experienced financial difficulties, the overall strength of this segment of our economy has been remarkable. Their success has enabled us to revert to our pre-pandemic merger strategy of growth.”

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