TOP 50 + 50 : 13

TOP OF THE PILE

THE LAST YEAR HAS BEEN EVEN TOUGHER ON THE NATIONS LEADING ACCOUNTANTS, DESPITE THE ECONOMY
EMERGING FROM RECESSION,WRITES PAUL GRANT

If you thought that 2009 had been a tough

year for the UKs top accounting firms, its
got nothing on 2010.
The picture emerging from the 2010
Accountancy Age Top 50 + 50 survey is that
the going has become even harder over the
last 12 months, despite the UK economy
emerging from recession.
Turnover for the largest 50 firms grew just 3%
over the past year, and the situation
was even worse for the next 50
practices in our survey (see page
16). But even this nominal growth
figure fails to tell the whole story of
what has been an incredibly difficult time for almost all firms.
Of the 29 firms that managed to
register any rise in turnover this year,
only seven posted double-digit
percentage growth on the last twelve
months. More worryingly, two firms saw
revenues stagnate while 17 experienced
falls double the the number of firms that
registered negative growth in 2009.
Among the Big Four the situation was
no better. Last years combined turnover
of 7.16bn was surpassed by just 1%,
growing to 7.23bn, largely down to a
strong performance by Ernst & Young. The
smallest of the Big Four grew fee income by
nearly 8% to 1.38bn.
By comparison, the countrys second
largest firm, Deloitte, saw revenues slip back
below the magic 2bn mark, down 2% to
1.97bn, following big drops in its take from
tax and corporate finance services. The fall
has given leading firm PwC some breathing
space at the top of the table, much needed as
PwC could only manage growth of 0.2% to
2.25bn. KPMG could soon see E&Y snapping at
its heels after dropping 1.6% to 1.63bn.
There were some positive stories to emerge from the Top 50.
RSM Tenon, following the acquisition of Bentley Jennison, overtook Baker Tilly and Smith & Williamson to place 7th in our table.
Figures provided by the firm show a huge 49% growth in turnover
to 225m, although this is 6.5% lower than the combined totals of
the two businesses from last years survey.
Moore Stephens in 11th position also saw strong growth, up
10% to 139m. Impressive upswings in tax and audit more
than made up for some big falls in consultancy and corporate
finance fees.
Insolvency specialists Begbies Traynor (14th) also thrived as the

TOP 50

ACCOUNTANCYAGE.COM/FEATURES

number of administrations skyrocketed over the last year, growing

turnover by 13% to 70m. Reeves + Neylan also performed
admirably, jumping five places in the table to 40th on 14.5%
growth and revenues of 14.8m.
Undoubtedly one of the biggest success stories from this years
Top 50 is the continued rapid rise of London-based Frank Hirth.
Just two years ago, the listed accounting company languished at
number 56 in our table. Having broken into
the Top 50 last year following 12% growth, it
has now jumped again to 39th with an
impressive income rise of 31% to 15.6m.
The firm has continued to capitalise on
serving US financial services expats now
working in the City
There have also been some new
entrants into the Top 50. After several
years of knocking on the door, SJD
Accountancy has finally made it into
the big league, registering revenues
of 12m, 9% up on last year. Turnaround specialists MCR and tax
advisers TaxAssist Accountants are
new participants and have entered
the table at 27th and 34th respectively. Both posted strong doubledigit growth in their first appearance
in the table. Others have had a
much tougher time.
Haslers just managed to cling on
to its Top 50 status. Last year, the
firm placed 38th in the table, but
could only manage 49th this year
following a 19% drop in revenue
to 11.9m. Large falls in income
from tax and corporate finance
were to blame, while audit also
suffered.
Baker Tilly (8th) also suffered drops in
the same service lines, with revenues overall down 7% to
190m, while Armstrong Watson (31st) saw falls of 8.5% to 17.3m
Across the service lines, the story was all too predictable. From
the figures provided by the firms, both consultancy and corporate
finance saw overall drops down on average 0.6% and 6.8% respectively. Insolvency, unsurprisingly, saw an average boost of 6.7%
while audit held up well (3.8%) and tax was largely stagnant (0.4%).
There is still hope among the firms, however. Most believe credit
facilities have not worsened over the last year, few expect there to
be a double-dip recession, and more than half expect partnership
profits to improve next year. Next weeks Budget could easily
change those views, but for now the firms are cautiously optimistic
about the future.
TURN OVER FOR THE TOP 50 TABLE. +50 ON PAGE 16

17 JUNE 2010

14 :

TOP 50 + 50 : 15

TOP 50 TABLE
RANK 2010 (2009)
1 (1)
2 (2)
3 (3)
4 (4)
5 (5)
6 (6)
7 (9)
8 (7)
9 (8)
10 (10)
11 (11)
12 (12)
13 (13)
14 (15)
15 (16)
16 (17)
17 (18)
18 (19)
19 (20)
20 (21)
21 (23)
22 (22)
23 (24)
24 (25)
25 (26)
26 (27)
27 (-)
28 (28)
29 (31)
30 (30)
31 (29)
32 (32)
33 (33)
34 (-)
35 (36)
36 (37)
36 (34)
38 (47)
39 (35)
40 (45)
41 (42)
42 (43)
43 (39)
44 (40)
45 (41)
46 (44)
47 (46)
48 (52)
49 (38)
50 (48)

PwC
Deloitte
KPMG ()
Ernst & Young
Grant Thornton UK ()
BDO
RSM Tenon Group ( #)
Baker Tilly
Smith & Williamson
PKF (UK)
Moore Stephens UK
Mazars ()
Vantis
Begbies Traynor ()
Haines Watts Group
Saffery Champness ( )
Horwath Clark Whitehill
UHY Hacker Young Group
Kingston Smith
MacIntyre Hudson
Chantrey Vellacott DFK ()
Wilkins Kennedy
Menzies
Johnston Carmichael ()
Rawlinson & Hunter (*)
HW Fisher & Company
MCR ()
Buzzacott
DTE Group (*)
Littlejohn
Armstrong Watson
Francis Clark
Streets
TaxAssist Accountants
Duncan & Toplis
Price Bailey
haysmacintyre
Frank Hirth ()
Cooper Parry
Reeves + Neylan
Hazlewoods
Larking Gowen
Shipleys
Lovewell Blake
Target Chartered Accountants
Scott-Moncrieff
Mercer & Hole
SJD Accountancy
Haslers
Anderson Anderson & Brown

UK FEE
INCOME
(m)

2,248.00
1,969.00
1,630.00
1,383.00
381.00
335.10
225.00
190.00
175.10
140.40
138.80
103.80
89.60
70.00
55.70
52.10
47.00
45.36
43.50
31.20
27.60
27.45
26.60
26.40
23.38
22.90
21.00
20.81
18.38
18.30
17.30
16.87
16.40
16.25
15.81
15.70
15.70
15.60
14.90
14.75
14.21
13.60
13.40
13.20
12.80
12.70
12.10
12.00
11.90
11.72

%
CHANGE

0.2
-2.0
-1.6
7.9
0.7
-5.0
49.0
-7.0
-3.3
-1.0
10.0
1.8
-3.0
13.0
-4.3
1.3
1.3
1.0
4.8
1.0
4.2
0.3
2.7
8.0
2.1
1.8
20.7
9.1
2.1
-1.0
-8.5
2.3
0.0
15.0
7.3
7.0
-3.7
31.0
-4.9
14.5
4.2
2.3
-5.6
-6.4
-7.0
-3.0
0.0
9.0
-18.8
0.2

OPERATING
%
PROFIT (m) CHANGE

682.0

3.0

382.0

-1.3

61.8

-9.7

11.1

-16.5

13.5

25.6

8.6

4.8

20.9

18.0

4.0

9.0

4.3
4.0

48.3
9.0

5.0

10.0

YEAR END

30/06/09
31/05/09
30/09/09
03/07/09
30/06/10
03/07/09
30/06/10
31/03/10
30/04/10
31/03/10
31/12/09
31/08/10
30/04/09
30/04/10
31/03/10
31/03/10
31/03/10
30/04/10
30/04/10
31/03/10
30/06/10
30/04/10
30/04/10
31/05/10
31/03/10
30/04/09
30/06/10
30/09/09
30/04/10
31/05/10
31/03/10
31/03/10
30/06/10
31/12/09
31/03/10
31/03/10
31/03/10
30/06/10
30/04/10
31/05/09
30/04/10
31/03/10
30/04/10
30/09/09
31/03/10
30/04/10
31/03/10
30/04/10
31/12/09
31/03/10

NO. OF
FEES PER PROFESUK
NO. OF
PARTNER SIONAL
OFFICES PARTNERS
()
STAFF

41
23
22
21
29
14
50
28
10
23
37
18
19
47
49
10
8
19
6
10
9
11
7
10
2
2
2
1
6
1
14
7
8
185
11
6
1
1
4
4
3
9
4
5
4
2
4
7
1
1

858
681
569
515
225
201
253
117
214
94
161
106
143
94
103
61
69
92
61
50
51
47
36
45
14
28
13
20
28
31
34
19
185
27
21
23
13
21
25
22
21
20
21
11
19
20
1
13
12

2,620,000 13,306
2,891,000 9,563
2,860,000 7,520
2,685,000 7,052
1,700,000 2,780
1,400,000 1,724
900,000 2,106
1,633,000 1,609
818,000 792
1,490,000 1,355
862,000 1,061
979,000 1,060
600,000 507
745,000
541,000 578
850,000 309
680,000 391
494,000 450
713,000 347
624,000 301
541,000 232
584,000 240
739,000 263
587,000 255
1,671,000
818,000 202
1,610,000 132
1,041,000 162
650,000
600,000
500,000
863,000
88,000
586,000
750,000
700,000
1,200,000
709,000
590,000
646,000
648,000
670,000
573,000
1,164,000
668,000
610,000
12,000,000
915,000
977,000

108
250
185
94
550
198
144
111
90
140
150
128
204
94
124
122
143
89
50
64
125

PARTNERS
AVG SALARY
OF STAFF ()

45,736

40,000

42,285
36,975

36,530

39,000

32,000

33,000
28,000

42,000
40,000
41,370
36,000

% MALE % FEMALE

87.0
86.0
86.0
85.0
85.0
89.7
89.0
86.0
83.0
91.0
91.0
90.6
89.5

13.0
14.0
14.0
15.0
15.0
10.3
11.0
14.0
17.0
9.0
9.0
9.4
10.5

89.0
79.0
85.0
90.0
88.0
86.0
86.0
89.4
94.7
95.0

11.0
21.0
15.0
10.0
12.0
14.0
14.0
10.6
5.3
5.0

96.0
84.6
90.0

4.0
15.4
10.0

83.0
84.0
88.6
84.0
85.0
96.0
96.0
78.0
69.0
96.0
92.0
91.0
86.0

17.0
16.0
11.4
16.0
15.0
4.0
4.0
22.0
31.0
4.0
8.0
9.0
14.0

95.0
82.0
89.5
70.0
100.0
69.0
75.0

5.0
18.0
10.5
30.0
0.0
31.0
25.0

STATUS

LLP
LLP
LLP
LLP
LLP
LLP
PLC
LLP
LTD
LLP
LLP
LLP
PLC
PLC
Pship
Pship
LLP
LLP
LLP
LLP
LLP
Pship
LLP
Pship
Pship
Pship
Pship
LLP
Pship
LLP
Pship
Pship
LLP
PLC
Pship
LLP
Pship
PLC
LLP
LLP
LLP
Pship
LLP
Pship
LTD
Pship
Pship
Pship
Pship
LLP

AUDIT/
ACCOUNTING
INCOME
%
(m) CHANGE

TAX

CONSULTANCY

%
INCOME
(m) CHANGE

(m)

%
CHANGE

737.0
406.0
765.2

5.0
3.0
0.4

INCOME

861.0
567.0
485.7

-1.0
7.0
4.6

650.0
459.0
375.0

-4.0
-7.0
-11.9

134.0
99.1
70.0
94.0
21.9
59.0
63.1
68.9

-4.8
-7.0
62.0
-8.0
-18.0
-1.0
13.0
5.2

92.5
90.1
56.0
53.0
32.4
33.7
24.7
21.3

-5.3
-8.0
30.0
-4.0
-4.0
5.0
14.0
-17.4

26.6
17.5
28.1
22.1
23.1

-0.4
5.0
6.0
8.0
3.3

20.6
13.5
12.9
9.8
5.3

-4.9
2.0
0.0
-12.0
3.3

2.4 -31.7

12.0
15.8
12.1

7.0
1.4
2.0

7.8
5.4
6.3

7.0
-3.6
12.5

1.5
3.3
5.2

2.0
23.3
12.3 -21.0

INSOLVENCY
INCOME
(m)

%
CHANGE

CORPORATE
FINANCE
INCOME
%
(m) CHANGE

ETHNIC
MINORITY
PART- QUALINERS % FIED %

6
160.0

50.0

92.0

22.1

50.0
32.0
10.0
15.2
13.5
13.6
27.8

16.0
3.0
-16.0
-4.0
5.0
11.5

0.5 -62.0
1.8 23.0
6.3 27.6

0.3
6.5
3.9

0.0
5.0
2.3

0.0
-2.1
0.0

6.0
2.0

5.0
5.8

283.0
253.0

-9.0
-19.0

43.5
31.1
10.0
12.0
5.0
9.2
3.9

-1.1
-41.0
64.0
-25.0
-18.0
-18.0
-15.0

14

10

2.0
1.2
1.1
1.1
1.8

-14.8
-32.0
-22.0
-40.0
6.7

0.3
0.4
0.5

-63.0
10.0
-37.0

3
9
3
8
4
2

30
15
11
10
7

18

29
6

26

17.5
15.9

8.2

7.1

9.8

10.6

1.8

10.5

-0.3

3.3

-5.2

0.2 -51.5

8.6
9.9

4.7
0.0

5.4
3.4

5.9
5.0

2.3
2.3

-5.5
0.0

5.8
8.0

5.8
3.0

4.4
2.7

5.8
10.0

3.6
0.9

5.9
0.0

4.7
4.8
6.4
7.7
7.3
6.9

-6.3
29.0
4.7
5.5
-5.0
-4.0

3.4
4.8
2.8
3.2
2.6
2.6

-6.4
20.0
10.5
0.0
-10.0
-4.0

2.9
1.8
0.7
1.6
0.2

-5.5
13.0
-3.4
78.8
0.0

3.3
12.0
3.5
5.4

-0.3
9.0
-7.9
3.0

5.9

-4.2

0.2

6.5
4.3

-23.5
6.0

7.1

0.6

0.8

9.5

0.0

-75.0

0.4
0.8

233.3
12.0

69.0
-29.0
8.2
-50.0

-21.4

0.1

8.0

2.1

-10.1

0.6
0.8
3.4
0.6

-1.7
14.3
3.0
0.0

0.9
0.4
1.4
0.2
0.1
0.2

1.7

6.2

0.2

-11.8

0.9

50.0

0.4
1.7

-63.6
-18.0

8
3
7

-50.0

4
13
20
2

*Income figure estimated by Accountancy Age. Figures provided are an estimate by the firm. Consultancy figures are the overall figures for Advisory practice. # Turnover based on analyst expectation for the year ending 30.06.10, adjusted for 12 months effect of RSMBJ acquisition. Figures include the Guernsey office but not the Geneva office.

17 JUNE 2010

ACCOUNTANCYAGE.COM/FEATURES

ACCOUNTANCYAGE.COM/FEATURES

17 JUNE 2010

16 : TOP 50 + 50

BEST OF
THE REST
ITS BEEN A HARD YEAR FOR THE +50 FIRMS,WITH MANY
STRUGGLING TO GROW AND MOST ARENT EXPECTING
IMPROVEMENT ANY TIME SOON,WRITES PAUL GRANT
While the Top 50 accountancy firms have
been struggling to cope with the tough
economic conditions, things are even worse
for the firms below them. Our second annual
+50 table shows that growth for those firms
ranked from 51 to 100 has virtually ground to
a halt. The average growth rate for those that responded to the
survey was just 0.3%. Just 21 firms managed to record revenue rises
over the last twelve months while 23 saw their income fall.
Many expect little to change in the coming months.When asked for
their outlook on the next twelve months, most believed the economic
situation remained challenging with others saying they expect
another tough year ahead. As a result, most anticipate the number of
professional and support staff to remain broadly the same during the
next twelve months. However, only two respondents actually expect
their revenue figures to fall, while 24 hope to see some growth.
The situation may also be worse than the table shows. There are
a few new faces in the +50 and several of those that featured last
year declined to complete the survey. Some were quite open in
their reason for not participating their results had been very poor
and they didnt want to make their figures public.
By contrast, the new members of the +50 recorded some of the
most impressive figures.
ASE only just failed to make the Top 50 as a new entrant, ranking
51st with growth of 17% and revenues of 11.1m. Moore and
Smalley debut in 59th position with revenues of 10.2m and
growth of 2% while Montpelier Chartered Accountants make their
mark in 62nd position, growing 13% to 9.7m. A massive income
rise of 29% meant that Cumbrian accountants Lamont Pridmore
also sneaked into the +50 table at 97 with revenues of 2.1m.
Others havent been so fortunate this year. Rothman Pantall,
based in the South of England, dropped 10 places to 67th after
turnover fell 14.5% to 8.8m. Big falls in its tax and consultancy
lines were at the heart of the problem.
Critchleys fell six places to 74th after bringing in 7.4m, 9%
below its 2009 figures. Jeffreys Henry also slid down the table to
80th place. Its 5.5m fee income was 10% lower than last year.
Given the economic pressure heaped on the firms and their
smaller size, other issues such as the environment and diversity have
taken a back seat for now. Only five of the +50 admitted to having a
dedicated diversity director at the firm, while just 12 have a company
wide policy on reducing their corporate carbon footprint.
Another tough year ahead is predicted, and while many in our
+50 table will be hoping to move up into the big league, most will
simply be happy to keep their heads above water.

+50

ACCOUNTANCYAGE.COM/TOP50

17 JUNE 2010

+50 TABLE
RANK 2010 (2009)

UK FEE
INCOME
%
(m) CHANGE

YEAR END

NO. OF PARTNERS
(FEES PER
PARTNER ())

51 (-)
52 (50)
53 (49)
54 (53)
55 (54)
56 (51)
57 (55)
58 (60)
59 (-)
60 (58)
61 (56)
62 (-)
63 (61)
64 (62)
65 (65)
66 (59)
67 (57)
68 (64)
69 (67)
70 (66)
71 (69)
72 (72)
72 (70)
74 (68)
75 (73)
76 (71)
77 (75)
78 (74)
79 (77)
80 (76)
81 (80)
82 (78)
83 (79)
84 (81)
85 (-)
86 (83)
87 (82)
88 (88)
89 (85)
90 (89)
91 (-)
92 (90)
93 (91)
94 (93)
95 (92)
96 (95)
97 (-)
98 (96)
99 (98)
100 (99)

11.10
10.95
10.83
10.81
10.80
10.54
10.40
10.30
10.20
10.03
9.90
9.71
9.30
9.24
9.10
8.90
8.81
8.80
8.10
7.95
7.94
7.59
7.59
7.40
7.11
7.10
6.20
6.12
5.80
5.54
5.26
5.19
4.90
4.70
4.50
4.33
3.90
3.78
3.60
3.56
3.50
3.33
3.22
3.19
3.10
2.67
2.10
1.82
1.60
1.50

31/12/09
31/03/10
31/12/09
30/04/10
30/09/09
31/03/10
30/11/09
31/05/09
31/03/10
30/04/10
31/05/10
31/12/09
30/04/10
31/12/09
02/04/10
30/04/10
31/03/10
31/12/09
05/04/10
31/03/10
31/03/10
31/03/10
30/04/09
31/05/10
31/03/10
31/05/09
30/09/09
30/09/09
31/03/10
30/04/10
31/03/10
30/04/10
30/09/09
31/03/09
30/06/09
31/12/09
31/03/10
31/12/09
31/03/10
31/12/09
31/08/09
31/12/09
31/03/10
31/05/09
30/06/09
30/06/09
31/03/10
31/03/10
31/03/10
30/04/10

5 (2,220,000)
17 (644,000)
17 (660,000)
17 (636,000)
26 (415,000)
22 (479,000)
20 (520,000)
17 (606,000)
17 (600,000)
15 (670,000)
17 (582,000)
21 (460,000)
17 (540,000)
15 (559,000)
14 (650,000)
21 (450,000)
23 (269,000)
20 (400,000)
19 (426,000)
13 (612,000)
12 (661,000)
10 (698,000)
16 (470,000)
12 (616,000)
13 (546,000)
15 (474,000)
7 (886,000)
11 (556,000)
14 (414,000)
8 (693,000)
10 (526,000)
9 (576,000)
15 (327,000)
9 (522,000)
7 (647,000)
9 (482,000)
7 (557,000)
9 (404,000)
9 (400,000)
8 (508,000)
6 (576,000)
6 (555,000)
7 (460,000)
6 (530,000)
7 (470,000)
2 (1,337,000)
3 (700,000)
4 (455,000)
5 (320,000)
1 (1,500,000)

ASE
Simmons Gainsford
Barnes Roffe
Bishop Fleming
Beever and Struthers
Hillier Hopkins
Henderson Loggie
Silver Levene
Moore and Smalley
James Cowper
Campbell Dallas
Montpelier
Thomas Westcott
Barber Harrison and Platt
Forrester Boyd
French Duncan
Rothman Pantall
Spofforths
Brebners
Berg Kaprow Lewis
Scrutton Bland (*)
Dains ()
Mitchell Charlesworth
Critchleys Accountants
Whittingham Riddell (*)
Goodman Jones
Chiene & Tait
Rayner Essex
Martin Greene Ravden
Jeffreys Henry
Harris Lipman
Creaseys (*)
Bird Luckin
Adler Shine (*)
Wingrave Yeats
Taylor Cocks
Broomfield & Alexander
Moore Thompson
EQ Chartered Accountants
Raffingers Stuart
Bennett Brooks & Co
SMP Accounting and Tax ()
Hartley Fowler
HWB
Lambert Chapman
Wellden Turnbull
Lamont Pridmore
Begbies Chettle Agar
TWP Accounting
Dunkley & Co

17.0
0.7
-5.5
3.4
6.9
-1.9
3.0
9.6
2.0
1.0
-1.0
12.9
1.0
2.0
5.1
-3.0
-14.5
1.1
-1.2
-5.4
0
4.1
-3.5
-9.0
0
-2.7
-4.6
5.6
-3.3
-10.0
9.5
0
-3.9
0
-8.5
7.0
-5.8
2.1
-6.5
-3.0
7.6
-8.1
-4.7
-0.6
-6.0
4.4
28.7
-6.6
0.0
0.0

* Income figure estimated by Accountancy Age. Partners and directors included in fees per partner calculation.
IOM is not part of the UK but is part of the British Isles

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