BDO is pleased to announce that the total combined fee income for the year ended 30 September 2012 for all BDO Member Firms, including the exclusive members of the US and Spanish firms’ Alliances, amounted to €4.630 billion / US$ 6.015 billion.
This represents an increase of 13.98% in euro compared to the previous year, and plus 6.11% when measured in US dollars.
All BDO regions have without exception risen to the economic challenges faced by not just accountancy, but all financial services professions, by achieving tangible growth. BDO’s Asia Pacific region was the fastest growing for 2011 / 12, showing an impressive 48.5% increase in combined fee income. The region’s growth was driven by BDO in China and in Japan. The figures do not include the recently announced impending merger with certain PKF offices in China, which will bring a further 350 people to the firm.
Merger activity has also boosted growth in BDO Australia, where integration combining the BDO and PKF offices in Brisbane, Melbourne and New South Wales, and most recently in Adelaide, have contributed to the firm’s revenue increases across the board.
Elsewhere, our Middle East region has once again posted significant growth, increasing revenues by 31.8%: positive performances in Bahrain, Qatar, Saudi Arabia and the UAE in particular have influenced this. In North America & the Caribbean, a double digit increase was strongly influenced by a very positive growth in the USA, assisted by the appointment of new firms in Puerto Rico and Barbados, while in Latin America, the rise in overall revenues was led by the Dominican Republic whose merger with the former RSM firm in May more than doubled the firm’s size. Colombia and Peru also demonstrated impressive growth.
Despite continuing difficulties in the euro zone, BDO in Europe has continued to buck the trend in showing improved growth once again compared to last year (+4.6%), with France and Norway the front runners, through a combination of organic growth and strategic mergers. Other outstanding performers in Scandinavia include Finland and Iceland, with small firms also leading the way in Eastern Europe – the growth experienced by our Slovak Republic, Albania and Azerbaijan member firms is worthy of note.
Building on the results of the previous two years, Sub-Saharan Africa continues to contribute to the growth of our network, this year with +8.4% in revenues. Almost every country in this region has participated in this increase.
The fee split by service line across the BDO network remains broadly similar, although with a slight increase in advisory services, to 21%. Audit and accounting services account for just under 61% of our combined fee income, with tax services maintaining a steady 18%.
(NB all of the above percentages are as expressed in euro).
At year end 2012, BDO provides services in 138 countries and there has been a significant rise in the number of partners and staff working in BDO, up by 12.4% to 54,933. The year has seen a corresponding rise in the number of BDO offices: the network is now represented in 1,204 offices worldwide, an increase of 7.7% on 2011.
Martin van Roekel, CEO of BDO since October 2011, is delighted by the network’s overall results in the first year of his role. “The accountancy world is changing. In tough times, companies all over the world are fiercely focused on cost, value and above all, service. This is where BDO has the edge – our clients are not looking for gimmicks – they simply want the consistently high quality service delivery that meets their needs. What matters to us is how they experience BDO and our service delivery.
“The continuing positive results clearly shown right across BDO testify to the demanding client service standards that all our firms must meet. Our dedication to exceptional client service is founded on the highest ethical and technical standards and we never compromise our independent and objective approach”.
Referring to the successive mergers seen across BDO this year, he comments “It is a tribute to the strength of our brand that all the firms joining our network are now known as BDO. BDO is the leader for companies operating in the mid-market and it is therefore no great surprise that we are attractive to both independent firms and those within other networks. BDO stands for exceptional client service, delivered by exceptional people, and they are very pleased to be part of it.
“The alignments realised between us and other mid-tier networks this year and last effectively demonstrate our mutual desire to lead, from a position of strength, the inevitable and long-overdue consolidation in our segment of the accounting profession. I am confident that we can expect not only a continued strengthening of our network performance in the months to come, but also of our worldwide presence”.