EY UK has announced its financial results for the year ending 30 June 2024, demonstrating resilience in the face of economic headwinds.
The firm reported a 3% increase in net revenues, with total fee income reaching £3.70 billion. The company’s performance varied across its different business segments, reflecting the challenging trading environment, particularly in terms of reduced large cross-border transactions and transformation projects.
The assurance business achieved a robust 10% revenue growth, while tax services recorded a 4% increase.
However, consulting experienced a 4% decline, and the strategy and transactions segment saw a more significant 13% decrease.
Despite the overall revenue growth, EY UK reported a slight dip in profitability. Distributable profits before tax stood at £653 million, down from £659 million in FY23.
The average distributable profits per Partner decreased by 5% to £723,000, compared to £761,000 in FY23.
This decline in partner profits is attributed to a higher average number of partners during the fiscal year.
Hywel Ball, UK Chair and UK&I Managing Partner, said: “In a year of economic and geopolitical uncertainty, we’ve delivered a strong performance and continued to invest in the business, our people and the communities in which we operate.
“With depressed UK and global deal activity and weak levels of corporate confidence during FY24, we have responded to the market to ensure we have the right platform for continued long-term growth and profitability.
“We’ve created jobs for 1,600 young people across the UK, continued to make significant investments in audit quality, and accelerated our investments in AI.
“These investments will support our long-term growth trajectory, whilst enabling us to adapt and serve the changing needs of our clients.
“The roots of our firm extend back over 200 years to James McClelland in Glasgow in 1824. We’re now a £3.70bn UK business with over 20,000 people, 22 offices and 3,500 student trainees at any one time.
“I’m incredibly proud of our business and teams and that we continue to be a significant source of growth and investment for the UK.”
As EY UK navigates through economic uncertainties, the firm remains focused on its people, clients, and communities, positioning itself for future growth and opportunities in an evolving global economic landscape.
The company’s ability to adapt to changing market conditions while maintaining its commitment to long-term growth and development will be crucial in the coming years.