Turnover Falls at BDO
TURNOVER at the fifth largest firm has fallen slightly according to its annual report.
BDO saw its turnover drop to £280m in 2011 from £302m in 2010. However, on a like for like basis taking into consideration the disposal of its investment business Oakley Capital Private Equity, turnover last year was £294.6m.
Operating profit was up 1.4% on 2010 on a like for like basis with the firm posting £86m in 2010 and £75.6m this year.
A spokesman for the firm said it had managed to increase its profit margin by taking a "tight control of costs" and increasing efficiency.
Staff numbers fell to 2,419 in 2011 from 2,538 in 2010 with the majority of job losses attributed to the sale of the investment business the firm offloaded late last year.
Business recovery was the worst affected service line at BDO. The firm's recovery operating profit dropped to £12m from £20m last year, turnover declined about £11m and staff numbers reduced by 15 people.
Managing partner Simon Michaels (pictured) said: "Although the economic environment remains uncertain, BDO has improved profitability despite a slight fall in like for like turnover, reflecting the emphasis that we have placed on strengthening our balance sheet.
"Looking forward, a major programme of accelerated investment has begun in the financial services sector. This is a sector that spends the most on professional services, a trend which is set to continue due to the impact of increased regulation. During the current and next financial year we expect to double the number of partners and staff operating in this field."
Total members capital for the LLP came to £65.6m with the highest paid member taking home £1.3m up from £1.2m in 2010.