Ernst & Young (EY) UK’s net revenue grew by a single-digit percentage over 2024, while fee income remained flat, due to a reduction in large cross border transactions.
The Big Four firm revealed that its net revenues grew by three per cent, while it generated fee income of £3.7bn, slightly down on £3.76bn it recorded last year.
Distributable profits before tax were down nearly 1 per cent to £653m, from £659m in 2023.
Average distributable profits per partner were down five per cent to £723,000 compared to £761,000 in the last financial year, however, the firm stated this reflects the higher average partner numbers during 2024.
In a breakdown of its groups, EY stated that it achieved a 10 per cent revenue growth for its assurance business and 4 per cent growth for tax.
Its audit revenues also grew by 14 per cent, as the firm currently audits 24 of the FTSE 100 and 79 of the FTSE 350, as well as a number of other businesses.
Iy was its consulting and strategy and transactions groups that struggled, as revues decreased by 4 per cent and 13 per cent, respectively.
Earlier this month, EY reported its global figures which revealed single-digit growth against the backdrop of a smaller headcount.
While these results from EY also come its rivals. PwC UK also reported single-digit growth in revenue but against the backdrop of the group’s profit and partner pay dropping, again.
While revenue at Deloitte UK increased slightly by over two per but again, against the backdrop of its profit stalling.
Commenting on EY UK’s results, UK and Ireland regional managing partner elect Anna Anthony noted: “We’ve had a solid start to the first quarter of our new financial year, with an improving deals market benefitting our strategy and transactions business in particular.”
“We expect to see this momentum continue to build as we go through the year,” she added.
Anthony was appointed to the leadership role earlier this month after Hywel Ball revealed in the Summer that he was stepping down. She is set to take over the position officially, effective from 1 January 2025.
On his last results in power, Ball noted: “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.”