BDO’s total combined fee income for the year ended 30 September, 2012, for all BDO member firms, including the exclusive members of the United States and Spanish firms’ alliances, amounted to €4.630 billion/US$6.015 billion.
This represents an increase of 13.98 per cent in euro compared to the previous year, and plus 6.11 per cent when measured in US dollars.
BDO’s Asia Pacific region was the fastest growing for 2011/12, showing a 48.5 per cent increase in combined fee income. The region’s growth was driven by BDO in China and 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.
In North America and the Caribbean, a double-digit increase was strongly influenced by a positive growth in the US, 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 strong 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 (plus 4.6 per cent), with France and Norway the front runners, through a combination of organic growth and strategic mergers.
The fee split by service line across the BDO network remains broadly similar, although with a slight increase in advisory services, to 21 per cent. Audit and accounting services account for just under 61 per cent of our combined fee income, with tax services maintaining a steady 18 per cent.
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 per cent 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 per cent on 2011.
Martin van Roekel, chief executive officer of BDO since October 2011, noted a change in the accountancy world. “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.”
Referring to the successive mergers seen across BDO this year, he commented, “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,” Mr. van Roekel said.