Revenue announcements 2003
Deloitte announcement of results for 6 months ended 30 November 2003
Deloitte & Touche LLP adopted limited liability partnership status on 1 August 2003 and the first full audited financial statements will relate to the year ending 31 May 2004. Deloitte today announced the unaudited interim results for the six months ended 30 November 2003.
Deloitte revenues for the year ended 31 May 2003 increased by 33% to £1228m.
Deloitte revenues for the year ended 31 May 2003 increased by 33% to £1228m. The results reflect the Andersen transaction from August 2002 when over 3000 partners and staff joined the firm.
Five years of continuous growth
Deloitte also announced that John Connolly had been re-elected the UK firm’s Senior Partner and Chief Executive. Also effective 1 June 2003, Connolly has been appointed Global Managing Director of Deloitte Touche Tohmatsu and Chairman of the Global Management Committee.
Reporting on financial year 2003, John Connolly said, "2003 has been a year of huge activity for the firm. The major development in the year was the integration of over 3000 people from Andersen and our goal was to achieve this with as little disruption as possible. Within just 12 weeks the enlarged firm was operating in its new integrated shape with leadership roles clearly established. The successful integration enabled us to continue with the exceptional level of client focus which characterises our firm. Market conditions were very tough throughout most of the year and we have performed well with a continuous flow of new engagements across all business areas.
"In April, we concluded that we would retain the Deloitte Consulting business which has now been combined with our other consulting operations. This provides Deloitte with an unparalleled range and depth of skills which will benefit the delivery of all of our services to clients. "With effect from 1 August 2003, the firm will operate as a limited liability partnership in the UK."
Service line profile
John Connolly commented further on the firm’s business profile and service line growth, "The firm has now achieved an exceptionally well balanced business profile by service line and across client segments. We provide services to a high proportion of the UK’s largest companies, to government departments and other areas of the public sector and we continue to serve exciting middle market companies, especially high growth businesses.
"Growth in the audit business was satisfactory, with the acquisition of many new clients including prior Andersen clients, but also many new clients won in competition throughout the year. Our tax business has performed exceptionally. During the year, both the International Tax Review and Euromoney identified our firm as the Number 1 UK tax firm.
The Consulting business has enjoyed reasonable success, but no growth, in very tough markets in which corporate investment has slowed considerably. The high growth in Corporate Finance reflects our strength in that area, especially in private equity where throughout Europe we enjoyed considerable success, particularly on the larger transactions. Our Reorganisation Services division and post merger integration team in Corporate Finance had exceptional years.
"Finally, on the people side, we added almost 750 new graduates to our firm as we continue to build for the future."
"Deloitte continued to support a wide range of community initiatives based around the themes of enterprise, education and employability. Our eskills4industry initiative, an IT training programme for students from disadvantaged communities, won the London regional Award and gained a 'Big Tick' accreditation from Business in the Community in this year's awards for excellence. Eskills4industry pilot has been so successful that we are now working towards rolling out the programme in 10 new locations round the UK. This initiative is just one of a number that we support other initiatives include business mentoring and secondary school mentoring."
"We have commenced the new business year with perhaps some early signs of increased market opportunity, but overall we are still cautious. It will be well into Autumn before it would be wise to make a determination as to how strong the recovery might be. The Deloitte firm is, however, strongly positioned to succeed in any market."