EY partners share in rising profits amid M&A and IPO boom

Partners at EY’s UK business will receive an average £727,000 share in profits after a year in which a revival in mergers and acquisitions and company flotations boosted revenues.

It was an increase on the £651,000 profit share a year earlier, and the combined profit pot to be shared among the firm’s 567 partners increased by 12% to £412m.

Partners at fellow “big four” UK accountancy firm PricewaterhouseCoopers received an average profit-share payout of £722,000, up 2%.

All parts of EY’s business grew in the year to 27 June 2014, with revenues up 8.6% to £1.87bn, partly thanks to a rising number of private equity deals and company floats. EY advised on 40% of flotations in the past year.

The financial regulatory backdrop was also favourable as clients sought advice on changes. Financial services remained the firm’s largest industry sector, with a sixth year of strong growth.

Steve Varley, EY’s UK chairman, said investment in the UK business, especially through the recession, was paying 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. Our ability to collaborate internationally has given us significant competitive advantage in helping our clients expand across borders.”

For the first time, the advisory business accounted for the biggest share of revenues, up 15% at £559m. The assurance division, which includes EY’s core audit business, grew by 8.5% to £550m. Audit wins during the year included the BBC, the Co-operative Bank, and London Stock Exchange. The firm recruited more than 3,500 people over the year, taking staff numbers in the UK to more than 11,000 across 21 offices. More than 750 graduates and 100 school leavers joined the firm in the latest intake.

Globally, EY revenues rose 6.8% over the year to $27.4bn (£16.9bn).

Powered by Guardian.co.ukThis article was written by Angela Monaghan, for The Guardian on Thursday 2nd October 2014 00.01 Europe/London

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