Grant Thornton’s UK profits rose by more than a third to £116m last year Pastry shop Valerie and Interserve, both of which collapsed in 2019.
The UK’s sixth largest accounting firm said “extraordinarily brisk” demand for M&A advice has resulted in a 40 per cent rise in revenue across its transactions and corporate advisory team, which reported £152m in revenue for 2021.
Total net income rose 15 per cent to £543m and profits rose in all other business areas, which include auditing and the firm’s business restructuring.
Bigger rivals Deloitte, EY, KPMG, PwC and BDO all reported rising UK profits in their most recent financial years and are stuck war for talent to meet demand for quotes and advisory services from companies trying to reshape their operations post-pandemic.
Grant Thornton hired a record 450 apprentices and increased its total workforce by 12 percent to over 5,100.
Smaller rival Mazars on Monday reported a 14 per cent rise in UK revenue to £234m.
The average profit of Grant Thornton’s 190 partners increased by 34 per cent to £611,000. This was lower than the larger competitors, where the average affiliate compensation was £688,000 at KPMG to more than £1m at Deloitte.
The company’s grassroots employees received a record annual bonus pool worth £21m.
Grant Thornton was also helped by his work as manager of the UK arm of Greensill Capital, the lender whose demise sparked a UK political scandal last year. It was said that it should be ready in October Paid nearly £21m in the first year of employment.
Dave Dunckley, chief executive of Grant Thornton in the UK, said the company had built “real momentum” and there was a “renewed sense of trust and pride in the firm”.
The record payout to partners followed fines and costs of £4.2m imposed on Grant Thornton and its auditing partners by the UK Accounting Authority for failure to audit Patisserie Valerie and intervention. The Financial Reporting Council’s investigation into Patisserie Valerie found “a pattern of serious flaws in professional judgement” and “a failure to exercise professional skepticism”.
The firm remains under investigation for its scrutiny of retailer Sports Direct, but Dunckley’s tenure has since stabilized a bumpy start when he was criticized for telling MPs that his firm’s audit teams wasn’t looking for cheating.
Dunckley stabilized the ship after the previous boss, Sacha Romanovitch, resigned after colleagues attacked her leadership style and “socialist agenda” in an anonymous briefing to the press. Grant Thornton announced last month that Dunckley would serve a second four-year term.
EY announced on Tuesday that it plans to double the size of its UK and Ireland advisory operations to 10,200 people by 2020.
EY, which has acquired four UK consultancies in the past two years, said it will invest a further £75m over the next year to improve its ability to advise corporate clients on technology transformations.
Alison Kay, EY’s managing partner for customer service, said the expansion will help meet the needs of public and private sector clients who are “struggling with a convergence of challenges, from the global pandemic, climate change, of geopolitical uncertainty and operating in a post-Brexit world”.
https://www.ft.com/content/49707294-5dc1-4180-830d-1c9719771739 Grant Thornton’s UK profits rise by more than a third