Accountancy and business advisory firm BDO has announced revenues of more than £1bn for the first time in its 100-year history. It reported growth across all its core business areas, despite a backdrop of economic uncertainty for the UK economy.
BDO says it is the strength of its market heartland of entrepreneurial, mid-sized businesses – as well as the hard work and dedication of its 8,000 people – that have led to another successful year for the firm.
Despite difficult market conditions reported across the profession, BDO’s continued programme of investment has resulted in an 8.6% increase in revenues to £1.02bn.
In the previous financial year-ended June 2023, the firm made its largest-ever annual investment into the business of £120m, reducing that year’s profit per equity partner (PEP) by 6%. Altogether, over the last three years, BDO has invested an additional £250m back into the business – across all BDO offices in all regions of the UK.
This investment has been focussed on BDO’s people, its physical and digital infrastructure and responsible and sustainable growth for the long-term, through a culture of integrity and quality. This investment supports BDO’s ability to meet the needs of the businesses it works with and its ability to serve the public interest.
In the financial year-ended 5 July 2024, operating profits increased by 15% to £227m, reflecting returns on these investments. Average PEP in the financial year grew 12% to £681,000.
On 1 October 2024, Mark Shaw succeeded Paul Eagland as Managing Partner of BDO UK. Paul had completed his maximum of two four-year terms.
Commenting on the results, Managing Partner Mark Shaw said:
“In times of change and uncertainty, it makes sense that businesses turn to trusted advisers to guide them. Given our expertise, experience and position in the market, along with continued significant investment in our business, we have recorded a positive set of financial results.
“BDO’s market heartland remains the UK’s mid-sized businesses. These entrepreneurial, ambitious and growing businesses are the UK’s economic engine; they are driving economic growth and employment. Their success, combined with the capabilities of our people, have led to our success.
“These businesses are frequently overlooked and undervalued. It is easy for policy makers to focus on large businesses who naturally have the profile to command attention, but businesses that are mid-market or smaller are a vital part of the UK’s growth story contributing £2.4 trillion of revenues to the economy and 61% of UK employment. They are a huge segment of the economy and one that should be listened to.”
Business performance
During the year-ended 5 July 2024, all three areas of the business – Audit, Tax and Advisory – saw solid growth.
Audit posted revenues of £433m, an increase of 8.4% on the previous year. BDO’s position as the leading auditor to AIM-listed businesses and increasing demand from the main listing market have contributed to the rise in revenue. For the fourth year in a row, BDO audits more UK listed entities than any other firm.
The Tax business delivered another solid year with revenues of £241m (up 7%), with tax compliance, private client and risk advisory services continuing to be in high demand.
The Advisory business – which will now operate as two distinct service lines1 under Mark Shaw’s leadership – posted double-digit growth in revenues, up 10.2% to £342m. Strong performances were reported in Business Restructuring, Forensic & Valuation Services and Business Services & Outsourcing. An increase in activity across corporate transactions and within the firm’s growing sustainability and ESG services looks promising for the year ahead.
Continued investment in people, quality and infrastructure
BDO is proud to be a large professional employer, recruiting, training and nurturing talented individuals and providing fulfilling careers for its people.
In the last year, BDO welcomed over 600 new trainees to the firm, with applications now open for a further 700 to start in 2025 across its apprenticeship, graduate and industrial placement schemes.
In addition, the firm promoted almost 3,300 people – its highest number ever, representing almost 40% of the firm’s workforce. The firm now has 466 partners (up from 441 last year).
While London is its largest office, BDO remains committed to the development of its regional offices – with Liverpool seeing its greatest growth over the last five years. BDO continues to advance its Explore BDO and Black Heritage programmes, as well as its Teach First partnership to help improve social mobility across the UK.
BDO’s commitment to serving the public interest through high quality audits remains its number one priority. The firm’s multi-year investment strategy continues to focus on building the team and infrastructure needed to ensure the delivery of consistently high-quality audits.
Infrastructure investment more widely – both physical and digital – is also a key investment area and provides solid foundations for the future growth of a confident, ambitious firm. This year, BDO launched its own secure generative artificial intelligence (AI) platform, Personas, to support its people and utilise advancements in technology to deliver best value to the businesses they work with.
The firm has recently moved, or announced a commitment to move, to new sustainable office locations in Manchester, Guildford, Glasgow, Nottingham and Ipswich. It has also invested in major refits in Edinburgh, Bristol and Southampton.
The move to a new London HQ in the heart of the West End, announced in early Summer 2024 and to be completed late 2027, is the firm’s biggest physical infrastructure investment. The property has an ‘Outstanding’ BREEAM rating for sustainability, placing it in the top 1% of commercial buildings in the UK.
Mark Shaw added: “Our people have worked incredibly hard to build what has now become a £1bn firm. We remain committed to investing in first-class people and first-class infrastructure. The underlying strength of our firm and the talent of our 8,000 people have put us in a great position for the years ahead to work with businesses across the UK and more widely.
“Uncertainty in the UK and across global markets is likely to continue, and so we will not be complacent. Our heritage allows us to respond effectively to the markets we work in and the businesses we work with. As BDO’s new Managing Partner, I re-iterate our commitments on diversity and inclusion – including on gender balance, ethnicity and social mobility – and I fully support our programmes in these areas.
“As we look to the future, we have a clear strategy for balanced growth; growth which puts serving the public interest, doing the right thing, our culture and our people at its heart.
