Deloitte in the UK reported profits available for distribution to partners and retired partners of £572m for the year ended 31 May 2007, an increase of 17% over the previous year.  Revenues grew by 15.6% on the previous year to £1,802m.

John Connolly, Deloitte’s Senior Partner and Chief Executive and Chairman of the Deloitte Global Organisation, commented:

Business Performance
“Our performance reflects strong markets creating growing opportunities to serve our clients, our strength in gaining new clients, the importance of London as both the primary global financial and professional services centre, and particularly, in the level of mergers and acquisition activity.

“In presenting information on our business divisions, we have recognised the particular wider stakeholder interest in our audit activity.

“We have expanded our presence across all client segments.  We now provide significant services to 95% of FTSE100 companies and have worked for over 80% of Central Government Departments, devolved administrations in Scotland and Northern Ireland and over 50 of the larger local authorities and regional bodies.

“Our audit practice includes revenues related to the audit of financial statements, audit related services for audit clients and due diligence risk consulting and advisory services provided by our audit staff for audit and wider firm clients. Revenues increased by 14.4% with continued strong performances from the Financial Services and Enterprise Risk Services.  Other core audit markets saw weaker growth following reduced activity from IFRS conversion advice and preparation for Sarbanes-Oxley compared with the previous year.  We continue to grow our market share of the FTSE350 audit clients, and the most recent additions to our FTSE100 list of clients were Royal Sun Alliance Plc and SEGRO Plc.

“36% of total firm revenue was earned from clients for whom we are auditors. Within this 20% of total firm revenue related to audit fees.

“Our tax practice had a very strong year growing at 19.2%. A changing tax environment with increasing focus by tax authorities and tax payers on the accuracy, efficiency and timeliness of tax reporting saw exceptional growth in our Tax Management Consulting service line and the recent actions by the UK government to address UK business tax competitiveness is driving significant activity amongst our international clients focusing on the tax efficacy of their global operations.  Our specialist teams advising Private Equity, Infrastructure and Real Estate clients benefited from their exceptional reputation in a very active segment.

“Consulting revenue increased by 12.9%.  The focus continues to be on building a strong, balanced practice with a broad range of clients across the private and public sectors.  We have seen continued strong demand from across the sectors for high quality integrated business and technology services.  Likewise, our Human Capital and Actuarial practices have traded strongly in a Consulting market that has become increasingly segmented.  Predictably, there continues to be strong demand for services that address performance improvement and operational effectiveness as organisations strive to become more competitive and to successfully deliver major programmes

“Growth of 15.8% in our Corporate Finance practice was fuelled by strong mergers and acquisitions (M&A) activity. We ended the year top of the Big Four in M&A League tables in the UK and Europe. Success with the Disposals Service and continued investment in our Fund Placement and Debt Advisory offerings helped drive another good year for our Advisory business.  We experienced exceptional growth in our transaction support and post merger integration activities. Forensic and Dispute Services had an outstanding performance with a number of very major regulatory investigation assignments. In a quiet market, Reorganisation Services did well in delivering growth and winning a number of significant insolvency and restructuring engagements.

Profit
“Profit before tax grew by 22.3% to £564m and total profit available for distribution to partners and retired partners grew by 17% to £572m with very satisfactory performances across the four divisions but with profit growth in Audit growing more slowly, reflecting lower revenue growth in the core audit practice.

• Average profit per partner - £877,000 (£765,000)
• Profit share of Senior Partner and CEO £4,656,000 (£4,166,400)
• The share of profit allocated to the partners who were members of the Executive Group - £34m.

Our People and the Community
“The primary influencer of our success continues to be our people and in 2007 the average number of partners and staff in the firm was 11,300, an increase of 14% over the previous year.  We recruited 1400 new graduates, our largest ever intake and promoted or hired from outside the firm 80 new partners. 

“In the year we have had a particular focus on diversity, respect and inclusion.  Building on our commitment to create the best environment for all of our people to flourish, we have championed efforts to draw upon and sustain the widest pool of talent by launching a number of affinity groups.  Progress against key diversity performance indicators is reported to the Executive.

“Our people and quality achievements continue to receive wide recognition including: attaining second place in the Times Top 100 Graduate Employers; sixth position in the Sunday Times Best Big Companies to Work For; being recognised as the Best Big Four Tax Team in the LexisNexis awards; awarded the MCA Gold Award for Business Strategy; named No. 1 European Mid Market Financial Adviser; and awarded the “Leading Provider of Risk Consulting Services” by Forrester Research.

“Through the Deloitte Foundation we have funded two major community projects: Employability Skills and the Disability Sports Programme alongside our regular fundraising and community volunteering activity.  Employability Skills is the firm’s flagship community initiative, raising the employability of young people in the UK.  Over a five year period £2 million has been committed to fund a new generation of employability skills trainers in Further Education Colleges across the country.

“The Disability Sport Programme was launched this year to develop disability sport in the UK between now and 2012.  The programme involves a £1.7million investment by the firm with matching Government commitments and reflects our twin tradition of supporting community endeavour and nurturing top talent.”

“Finally, our internal ‘Green Agenda’ campaign has reduced our carbon footprint by 26% over the last 18 months.

The Future
“Historically, August is a quiet holiday month, but this year has been different as the world markets react to the US sub-prime shock.  Credit availability and confidence generally has been affected and undoubtedly we will have a more cautious environment going forward, with particular impact on some parts of the M&A market.  The underlying economy does, however, remain strong and business levels in the early period of the current year are good.  We are very strongly resourced in all our businesses and we look forward with confidence to the period ahead.”

Ends

Notes to editors:
Full Audited Financial Statements will be available on our website on 7 September 2007

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.