Deloitte profits hit as virus takes toll
Senior partner praises response within region
Professional services firm Deloitte has reported a 16 per cent drop in distributable profit despite seeing a 9.1 per cent growth in revenue across the business as a whole.
Deloitte registered a profit of £ 518m for the year ended May 31, 2020, down 16 per cent from £ 617m in the previous year.
PROFESSIONAL SERVICES firm Deloitte has reported a 16 per cent drop in distributable profit despite seeing double digit net revenue growth across Yorkshire and a 9.1 per cent growth in revenue across the business as a whole.
Deloitte registered a profit of £ 518m for the year ended May 31, 2020, down 16 per cent from £ 617m in the previous year.
The professional services firm reported revenue of £ 4.31bn for the year, up 9.1 per cent from £ 3.95bn in 2019.
However, this was mainly down to the first ten months of the financial year, prior to the effects of the pandemic, when revenue growth was close to 11 per cent, with all businesses growing.
Revenues in April and May 2020 were significantly impacted by Covid- 19, with growth dropping to around two per cent.
Stuart Cottee, practice senior partner for Deloitte in Yorkshire and the North- East, said: “In Yorkshire and the North- East we were fortunate to have double digit net revenue growth last year but we know that in the coming weeks and months all businesses will need to continue focusing on developing trust, identifying opportunities to transform, and further building resilience.
“I am so proud of what our people in Yorkshire and the NorthEast have delivered for our clients and for how they have supported each other, whilst working remotely during such challenging times.”
Deloitte responded early on during the crisis by suspending equity partner profit distributions and reducing or deferring, promotions, salary increases and bonuses to ensure “long- term stability”.
Richard Houston, CEO of Deloitte UK, said: “I’m grateful and proud of how our partners and people have responded to these difficult decisions, and for supporting each other and the firm throughout the pandemic.”
The pandemic has brought responsible business practices to
the forefront of many people’s minds and Mr Houston believes firms must be proactive in building trust.
He said: “Covid- 19 has placed a greater focus on what being a responsible business means.
“We are helping clients consider their impact on a range of areas, including climate change, ethical supply chains, safe storage of data, and responsible investment and lending strategies. We want them to emerge stronger from the pandemic while recognising the fundamental changes in the economy and how businesses must operate”