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Deloitte has reported a revenue increase of 14% to £5.6bn for the year ended 31 May 2023.
Growth in the firm’s advisory businesses slowed in the second half of the year, amid an increased caution among clients on spending and a slow-down in the M&A market. Overall, second half revenue growth was closer to 9%.
UK advisory businesses grew by 11%. Risk advisory continued to see demand from organisations addressing regulatory challenges and looking for advice on cyber security and resilience. Sustainable supply chain strategies also grew in focus as organisations sought to address risks, resilience and ESG within their wider networks.
Distributable operating profit increased by 6% to £756m, while average profit per equity partner remained broadly flat at £1.06m, compared to £1.05m reported in 2022.
In FY23 Deloitte in the UK hired over 6,800 new colleagues, including 2,767 graduates, apprentices and interns. Overall, 7,377 of its 27,000 people were promoted, with 100 of them to partner.
The firm invested over £310m in salary increases and bonus payments, as well as over £50m in learning and development, with its new European leadership centre in Paris (Deloitte University) due to open in 2024.
Deloitte said it will continue its commitment to the UK’s nations and regions, and is relocating its office space in the city centres of Belfast, Bristol, Edinburgh and Manchester to new, more sustainable offices.
In addition, the firm has continued our investment in technologies to improve quality, client service and its hybrid working experience, with £120m invested in FY23.
Richard Houston, Deloitte Senior Partner and CEO, said: “Our performance in the first half of the year was strong and, despite some softening of growth in the second half, we saw significant demand across all our services and industry groups, particularly in Financial Services, Energy and Resources and Public Sector.
“Looking ahead, we have a strong pipeline, with continued demand for digital transformation alongside advice on tax, sustainability, climate and AI adoption. We remain confident that the breadth of our capabilities, coupled with our investments, will ensure we’re best placed to support clients with the increasing pace of change and complexity they face.”
