Distributable profits increased 12% from £368 million to £412 million. Globally the firm reported revenues of US$27.4 billion for the same period – 6.8% growth over the previous financial year in local-currency terms.
Steve Varley, EY’s UK Chairman, says, “Critical to EY’s market leading growth in the UK is our global strength together with deep local connections in each of our 21 offices in the UK. Our ability to collaborate internationally has given us significant competitive advantage in helping our clients expand across borders. Our commitment to a long term investment strategy in the UK, especially through the recession, continues to pay off. Looking forward, even though there is a degree of political uncertainty in the UK, I do feel positive about the health of the economy and the opportunity this gives businesses to grow. At EY, our global strategy means we have exciting times ahead and I am confident that this strategy will help us help our clients grow in the UK and internationally.”
EY in Cambridge
- EY now employs 142 people in the Cambridge office at Cambridge Business Park.
- EY continues to invest in its people: Cambridge has seen 78 internal promotions across all our service lines and welcomed 60 new joiners to the firm over the past year.
- In September 2014, the firm employed 11 graduates in the Cambridge office and welcomed 9 summer interns for a six-week programme over the summer.
- EY Cambridge supports many local charities and organises the annual EY Charity Quiz, in support of Cancer Research and The Arthur Rank Hospice, which has helped to raise £40,000 for these charities over eight years.
Cathy Taylor, EY’s Senior Partner in Cambridge (pictured), comments: “Our strong performance in Cambridge, which was aligned with EY’s UK-wide performance during FY14, was underpinned by continued investment in our people and expansion across our service lines. In particular, our ability to collaborate internationally has given us significant competitive advantage in the market. Entrepreneurial businesses in Cambridge are targeting opportunities around the world as their markets improve and we are helping clients to expand across borders.”
UK Business Performance
In the UK, EY grew all of its four service lines. Assurance grew by 8.5% to £550 million driven by excellent performances across our core Audit business, Fraud Investigation and Dispute Services and Financial & Accounting Advisory Services. Audit wins over the last 12 months include London Stock Exchange, BBC, The Co-operative Bank and Sage. We continue to make significant multi-year investments to improve audit quality and fulfil stakeholder and public interest responsibilities. This includes our worldwide investment of over $400 million in a new generation of technology to support our audits, including leading edge data analytics. In the UK we have also continued to invest in our people, increasing our headcount by 9% by the year end.
The Advisory business grew by 15% to £559 million with good growth across all sectors. Transaction Advisory Services (TAS) grew by 5.9% to £289 million. Key growth drivers for TAS were the resurgence in private equity and a significant boost in IPO activity – EY advised on 40% of all IPOs in the last year. Tax grew by 3.3% to £470 million with a strong performance across all areas of the business, particularly the tax work provided on major M&A transactions.
In terms of sectors, Financial Services, the firm’s largest industry sector, continued its outstanding growth track record with a 6th straight year of strong growth. Other sectors, particularly Technology, Media, Telecoms and Private Equity also had very strong years.
Steve says, “We continue to invest in services, our regional businesses and talent in the areas that matter the most to our clients and broader stakeholders. This includes significant investment into real-time assurance, supporting the next generation of entrepreneurs, fraud investigation technology, corporate integrity, cyber security and data analytics. We are investing £20 million over the next three years in our offices outside of London, including a £650,000 investment in a new technology hub based in Manchester and the expansion of our Belfast office that will create almost 500 new jobs.”
Average distributable profit per partner increased to £727,000, up 11.7%, from £651,000 in 2013.
Investing in people
Strong business growth has also enabled EY to invest heavily in its people, with a record 68 new equity partners announced earlier this year. This month, the firm also welcomed over 750 graduates and 100 school leavers into its offices across the UK, as well as opening its doors to over 700 undergraduates during the year for internship and work experience programmes.
Steve comments, “The business performance we have achieved this year has been mirrored in the investment we are making in our people, from our school leavers and graduates through to our partners. I am particularly proud of our 39 new internal partner admissions within the business and see it as a testament of the strong talent pipeline we are nurturing at every level. The leadership and mentoring schemes for our high performing women and black and minority ethnic staff continue to accelerate the careers of those with highest potential. We also continue to promote a flexible working culture across the firm for all our people.”
Investing in young people and social entrepreneurs
One of the proudest achievements for the firm this year has been the launch of the EY Foundation - a new UK charity which aims to help young people find alternative routes into employment and education and to support social entrepreneurs and start-ups. Under the guidance of an independent board of directors, chaired by Patrick Dunne and through collaboration with the wider business community, charities and the public sector, the EY Foundation is aiming to affect social change focused on education, employment and enterprise.
Steve says: “The charity builds on the success of EY’s existing programmes for young people and entrepreneurs in the UK to give talent better access to the working world, which in turn will give business better access to diverse talent.”