EY’s revenue rose by almost 10 per cent over the last financial year as the big four firm secured several key audit appointments, and noted a strong demand for M&A services.
Key audit appointments, M&A deals chalk up growth for EY
The big four firm saw its revenue rise by 9.8 per cent to $1.78 billion for the 12 months to 30 June 2018, up from $1.63 billion recorded last year.
EY managing partner and chief executive Tony Johnson said the firm’s results were underpinned by an active M&A market, audit wins, and demand for people advisory and digital consulting services.
Its audit and assurance service line grew by 6.3 per cent to $375 million, securing the appointments of BHP, Ardent Leisure, Beach Energy, Primary Health and RACQ.
Mr Johnson also attributed the growth to “double digit growth” in transaction advisory services that came in part from infrastructure and M&A advisory, including EY’s role in Reece’s AUD$1.9 billion transformational acquisition in the US.
“We are currently advising on over $100 billion of new projects – in areas such as health, human services, transport, social housing, water and defence,” Mr Johnson said.
While EY’s FY18 revenue uplift came from virtually all-organic growth, Mr Johnson said acquisitions will continue to feature in the firm’s future.
“Acquisitions absolutely have to be part of the growth strategy, but it has to be measured. We will buy in areas that have the biggest tailwinds behind them, where clients have a real hunger for those services, and where we have pent up demand,” Mr Johnson said.
EY has also projected advisory to be the fastest-growing part of the business over the next 12 months.
“Digital and automation are embedded in all parts of our business and that is where the future lies and where the growth will come from,” said Mr Johnson.
“With over 2,000 bots enabling what we do, we’ve only just scratched the surface on the potential of data analytics and automation to undertake manual tasks.”
EY appointed 57 new partners in 2018, bringing total partnership numbers to 561, up from 540 in the prior year.
Further, the firm’s Oceania executive leadership team has achieved gender equality across its 12-person strong team for the first time in history.
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