Rachael Singh, Accountancy Age, Thursday 26 August 2010 at 08:40:00

Deloitte revenues fall but CEO and senior partner John Connolly believes thefirm is in a strong position


Deloitte UK's revenues dropped £16m in the last year, according to its annualreport.

The Big Four firm reported revenues of £1.953bn, a decline of £16m to theyear end 31 May 2010. The average partner payout declined to £873,000 from£883,000. Profits fell £18m compared with last year.

Revenues fell across audit, tax and consulting: 2.9%; 2.3; and 4%respectively. CEO and senior partner John Connolly said the volume of businesshours grew but pricing reduced.

Connolly remained upbeat about the results claiming revenues in corporatefinance grew 10.6% and the firm will continue to "gain market share".

He said the firm was able to achieve this as it expects competitors' revenuesto have dropped more than theirs.

"In these markets no-one is going to have a significantly different leveltheir competitors," he added.

Previously Connolly claimed in 2006 he would grow the firm's revenues to £2bnin two years - which he achieved in 2008.

He said the firm will "easily" get back to £2bn before he leaves, "we're notfar off now".

Deloitte acquired a range of businesses in the last 12 months to grow thefirm, including real estate advisory firm Drivers Jonas, sustainabilityconsultancy dCarbon8, and risk and security business IM Global.

"Our firm is in great shape to support our clients in the continuing complexenvironment and to capture growth opportunities as we continue to gain marketshare," said Connolly.

A statement from the company also highlighted that Deloitte had made a £1mcontribution to the Disaster Emergency Committee's Pakistan Floods Appeal, whichis believed to be the single largest UK corporate donation.