Deloitte records 14% revenue growth
The big four firm has generated strong revenue across its consulting and advisory businesses despite “economic and industry turbulence”.
Deloitte Australia generated revenue of $2.84 billion for the 2023 financial year representing a 14 per cent increase year-on-year, according to its annual report released yesterday.
Deloitte Australia chief operating officer Andrew Griffiths said that strong cost control combined with revenue growth momentum saw profit growing in line with revenue in 2023 financial year.
Mr Griffiths said that a reduction in demand in the fourth quarter off the back of broader weakening conditions in Australia did have some impact on the results for the financial year.
“However, we continue to win large-scale client work in domains including enterprise technology transformation, workforce transformation, climate transition projects, restructuring services and cyber risk,” he said.
“During this financial year we continued to invest in our business through the completion of seven transactions and the hiring of 52 lateral partners and we remain focused on the growth and long-term sustainability of our business.”
Deloitte Australia chair Tom Imbesi said recent events in the industry have demonstrated the value of maintaining strong standards of governance, ethics and integrity.
“In a year of heightened economic and industry turbulence, it is pleasing to have navigated the challenges and continued to deliver quality services and outcomes to our clients,’ said Mr Imbesi.
“The past 12 months have seen us continue to prioritise our client expectations and do our best to meet them, supported by our rigorous and robust monitoring systems, controls and safeguards, and our culture of ‘doing the right thing even when no one is looking.”
Consulting
Deloitte’s consulting business generating strong revenue from its consulting business, with revenue up 20.8 per cent.
“Strong client demand from clients across sectors from transport to insurance to aged care fuelled growth across several transformational issues,” the annual report said.
“These include modern work fuelled by human resources technology; core systems reinvention and digital transformation driven by cloud-based enterprise systems (particularly SAP and Oracle); growth and innovation enabled by data insights and AI; and climate and sustainability across all sectors.”
Audit and assurance
Deloitte also made considerable investments in data, digital technology and innovation across its audit and assurance business in the 2023 financial year.
Earlier this year, the US Public Company Accounting Oversight Board (PCAOB) undertook a review of Deloitte’s audit engagements and evaluated the firm’s quality control system.
Deloitte said it expects the report, when issued by the board, will not have identified any deficiencies in relation to work performed to support Deloitte’s audit opinions.
Financial advisory
Deloitte also generated stable growth across its financial advisory business despite challenging economic conditions, the annual report said.
“Our portfolio of offerings across the private and public sector positioned us well in priority areas including energy transition, infrastructure development and financial regulation along with government’s economic and social reform agendas,” it said.
Risk advisory
Demand for services relating to cyber resilience, climate risk and digital and technology risk also saw Deloitte’s risk advisory business grow.
“We continue to make investments in our workforce and completed one transaction this year with the team from Hacktive joining Deloitte,” the annual report said.
Deloitte expands presence in Western Australia
The firm also announced today that corporate advisory and strategy business Mainsheet Capital, based in Perth, will be joining Deloitte’s advisory group.
The team from Mainsheet Capital will join Deloitte’s well-established local M&A practice.
Mainsheet Capital WA Pty Ltd’s Maurice Argento, Emma Wright, Gerard Moody and Ian Gordon will become Deloitte Financial Advisory partners, and Bill Bent a principal.
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