Deloitte confirmed an increase in UK profits helped by public sector contracts during the pandemic, saying its work on the response to Covid-19 was ‘essential’.
The consulting firm, which employs 20,000 people in the UK, was one of the big winners of the government strongly criticized strategy rely on consultants to help roll out pandemic support programs.
According to data provider Tussell, it has been awarded £ 280 million worth of coronavirus-related public sector contracts since the start of the pandemic, including for work on the government’s Covid-19 testing schemes.
Richard Houston, chief executive of the firm, said Deloitte’s work “played a key role in reopening the UK economy after months of national constraints”.
Asked if the firm’s contracts in the public sector, including the Covid-19 Test and Trace program, represent value for money for taxpayers, he said: ‘The skills and capabilities we offer, along with a number of others private organizations, is essential to deliver the outcome. ”
Revenue from the firm’s British and Swiss companies, which operate as a single partnership, increased by 4.2% in the 12 months to end-May to £ 4.49 billion, which increased due to the demand for consulting services. and advisory services.
The firm’s 691 shareholders shared an operating profit pool of £ 590 million, compared to £ 518 million a year ago. The average profit per partner increased £ 731,000 last year to £ 854,000.
It was slightly lower than the 2019 payout of £ 882,000 but partner revenue was boosted this year by an additional one-off payment from the sale of Deloitte’s UK restructuring business.
Deloitte did not disclose the extent of the extra payment, but people informed the details that it would happen increases total salary to around £ 1 million.
Partners also had to pay in more money last year to support the business, the firm said. These capital contributions are repaid to partners when they leave.
Deloitte is the the latest professional service firm to publish strong financial results after customers completed the spending cuts at the start of the pandemic. Its partners remain the highest paid among the four major accountants, which include PwC, EY and KPMG.
It did not call any workers during the pandemic, but postponed promotions and temporarily cut pension contributions.
Houston maintained that staff in general were no worse off.
“We gave back promotions and increased the bonus pool,” he said. “In total, it was a comparable amount of money we originally saved.”
Staff also received a “thank you” bonus of between £ 500 and £ 2,000 in April.
The firm is continuing with a round of redundancies that is expected to reduce the number of executive assistants from about 500 to 380.
Deloitte’s largest division, consulting, increased its revenue by 10 per cent to £ 1.19 billion. Revenue in the financial advisory division also increased by 10% – to £ 578 million – thanks to a surge in mergers and acquisitions.
Revenue from auditing and reassurance increased by 5%, while the tax and legal department increased sales by 3%. Revenue at the risk advisory unit fell by 10 percent.
Deloitte did not follow KPMG and PwC by disclosing data on the socio-economic background of its staff. The data “needs more work” before the figures can be released, Houston said.