BDO hails ‘resilience’ of Scotland’s mid-market
Accountancy and business advisory firm BDO has hailed the “resilience” of Scotland’s mid-market businesses after posting a double-digit hike in revenues, although profits have dipped.
The firm reported an 11 per cent increase in revenues to £809 million for the financial year 2021/22 with growth across all three of its service lines – audit, tax and advisory. It cited the reasons for growth as being the resilience of its core market of entrepreneurial, high-growth and mid-sized businesses in the face of “difficult economic circumstances”.
The Uk-wide firm said it had made significant investments in the business. This has included spending £70m recruiting 1,000 people, promoting nearly 3,000 individuals, increasing salaries and investing in “quality” technology and digital applications.
As a result of the investments and the return to pre-pandemic levels of costs, profit before tax was down 8 per cent to £187m. While these high levels of investment mean a planned reduction in 2021/22 profit and partner pay, BDO insisted that the focus on “longer-term sustainable growth” was the right decision.
In Scotland, the firm has made a long-term commitment to office space at 2 Atlantic Square in Glasgow, while investing in a refurbishment of BDO’S Citypoint base on Haymarket Terrace in Edinburgh. There has also been a focus on improving audit quality.
Martin Gill, head of BDO in Scotland, said: “During such uncertain economic times, businesses like ours need to invest in skills to stimulate growth and, ultimately, the economy.”