BDO ends extraordinary year in good shape for growth

One firm, clients first focus helps BDO to hold steady in challenging climate

Following a year of unprecedented economic turmoil, BDO today revealed how the firm has shown resilience and forward thinking to emerge in a strong position for future growth.

Confidence and clients first for the year ahead

Simon Michaels, Managing Partner, BDO LLP commented: 
“I am pleased to be ending my first year as Managing Partner with a strong sense of confidence and expectation for the year ahead.  In the midst of deep recession, my firm and our clients have faced extraordinary challenges.  To meet those challenges we have evolved and reshaped BDO to put clients first in everything we do.”

Figures broadly consistent with trend across profession

Figures published in BDO’s annual report for the year ended 3 July 2009 reflects the trend across the majority of the profession with a 5 per cent decrease in national turnover to £335.1m, a modest contraction as a result of lower levels of transactions and other one-off assignments.  Business Restructuring showed the strongest performance, growing by 49 per cent as a result of increased activity related to the economic downturn.  Forensic Services and Investment Management also showed modest growth.  Decreases were attributable in the main to lower levels of transactional and other one-off work. 

Strong client endorsement and growth in listed company market

The annual report also shows that clients are reacting positively to BDO’s approach, with successes including:

  • nine out of 10 clients likely to recommend BDO, according to the firm’s independently run client survey;
  • strong retention of existing clients while attracting high profile new assignments, including Dawnay Day and Aurora;
  • continued growth in the listed company market, servicing 44 per cent of the FTSE350 in the last two years; and
  • working increasingly in the Public Sector and on some of the highest profile and significant Government projects, including the independent valuation of Northern Rock and the investigation into the collapse of MG Rover.

Commercial people, pragmatic advice

Simon Michaels continued:  “The profession has seen a slower year than we have previously enjoyed and like many other firms we have not been immune. We have been open and honest about our decisions and have taken action to reshape our business, focussing on the future and our competitiveness. In the new world it is essential that we are as agile and responsive as possible. We’re giving many of our clients the same advice to ensure they capitalise on market opportunities.  

“Our focus has been, and will continue to be, on ensuring our clients have access to bright and independently minded people equipped to deliver commercial, pragmatic advice.  We’ve invested significantly over the years to build a team with the skills to do this, and in the last 12 months, we’ve maintained our focus on client service and worked together across the business.  Sharpening our focus on internal talent and maintaining a strong position on graduate recruitment has been key, having achieved our best ever Times Top 100 Graduate Employer ranking along the way.”

In addition to regularly bringing together multiple disciplines to think ahead about client challenges and opportunities, BDO has continued to focus on ensuring a senior, hands-on approach, with a lower partner:staff ratio when compared to the largest firms.  This hands-on tone is set at the top of the firm by Michaels’ Leadership Team who have market-facing responsibilities, regularly supporting bids and spending time with clients.

International investment

The firm has also invested in international infrastructure to help clients grasp opportunities.  The international move to a single name reflects the firm’s focus on seamless international service, and in the UK, BDO has recognised and responded to the growing opportunities available to clients by developing international outsourcing services and investing in both the Middle East and India. 

The firm’s investment in a new Dubai-based corporate finance and advisory arm will support UK businesses who want to develop interests in the Middle East, as well as helping local and international businesses and institutional investors in the region.  BDO has also given strategic advice and made a modest investment in a new member firm in India – an increasingly important market for UK based clients, and a major source of inward investment to the UK.

A year of opportunity ahead 

Speaking about the year ahead, Simon Michaels said: “There is no doubt that the last year has had its moments, and as the economy starts to recover the year ahead will almost certainly continue to present us and our clients with challenges and opportunities.  That is why this year has been so important to lay the solid foundations on which we can build. Nothing is more important than our clients and we continue to do all we can to ensure they experience an exceptional service from people who are empowered to deliver. Our one firm approach, with clients at the heart of our activity, means we are entering the new financial year realistic about the challenges and excited for the future.”

- Ends –

You can access the BDO LLP Annual Report and Accounts at http://www.bdoannualreport.co.uk

Note to editors BDO LLP operates across the UK with some 3,000 partners and staff. BDO LLP is a UK limited liability partnership and a UK Member Firm of BDO International. BDO - Northern Ireland, a separate partnership, operates under a licence agreement.  BDO International is a world-wide network of public accounting firms, called BDO Member Firms.  Each BDO Member Firm is an independent legal entity world-wide and no BDO Member Firm is responsible for the acts and omissions of another member. The network is coordinated by BDO Global Coordination B.V., incorporated in the Netherlands with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located.

The combined fee income of all the BDO Member Firms was $5.14 billion in 2008. The global network has 1,095 offices in 110 countries and more than 44,000 partners and staff provide business advisory services throughout the world.

BDO LLP and BDO - Northern Ireland are both separately authorised and regulated by the Financial Services Authority to conduct investment business.

BDO is the brand name for the BDO International network and for each of the BDO Member Firms.
Contacts Rebecca Harper on behalf of BDO Tel:020 7260 2700 / 07717 317 015
Email: Rebecca.harper@bluerubicon.com