The fiscal year ending 31 May 2013 was a period of relative stability for Deloitte, with a net turnover of 631 million, a small decline compared to the previous year. However, net results decreased with approximately 10%. Among the functions, Consulting delivered the strongest performance.
Our eight-member Executive Board was fully operational for its first year. In the year, the Board saw the appointment of members Peter Bommel as CEO and Marco van der Vegte as Managing Partner Audit. This structure enables appropriate representation of all elements of our business and provides the board members to dedicate a significant amount of their time to clients and targets.
The net turnover remained relatively stable, but this is mainly caused by an increase in the costs of subcontracted work. Adjusted for this increase our net revenue declined with 4%.
For the third consecutive year, Consulting delivered double digit growth (16%), a remarkable achievement in the current economic climate. In the mature audit and tax markets, standardisation, automation and intense price pressures continued to impact our business and led to a decline in net revenues in Audit of 4% and in Tax of 7%. In FAS, net revenues decreased by 4% as a result of reduced Merger & Acquistions (M&A) activity.
New legislation is expected to have a impact on the way we deliver our services. The Dutch parliament’s decision to support mandatory audit firm rotation for Public Interest Entities (PIE’s) every eight years and to limit the number of non-audit services at audit clients, was high on the agenda in our conversations with PIE clients and in our internal strategic discussions.
Innovation is indispensable for growth in the market and that is why we have sought to be the most innovative provider, with major investments in new service areas, Data Analytics and Security & Privacy being the most significant.