RSM revenue surges 15% on middle market demand
Latest financial results show the firm’s business is booming in Australia and globally.
RSM recorded $349 million in revenue in 2023, a 15.2 per cent increase from the previous year due to demand from the middle market, it said on Monday.
The mid-tier firm’s result mirrored RSM Global network’s revenue growth of 16 per cent to $US9.4 billion last year.
RSM Australia CEO Jamie O’Rourke attributed the firm’s domestic performance to the strength of the Asia-Pacific region’s middle market.
“The RSM Asia-Pacific region grew by a strong 8 per cent, driven by middle market resilience, where businesses have taken an entrepreneurial approach to securing growth, even in challenging conditions,” he said.
Despite Australia’s economic slowdown, he was optimistic about business performance and that RSM would continue its upward trajectory in 2024.
RSM International CEO Jean Stephens said the network’s growth was guided by its 2030 Global Strategy to work “collaboratively as a global organisation” and better serve clients across borders.
“These financial results support our solid foundation for even greater future growth, ensuring RSM goes from strength to strength as we move forward with confidence, commitment, and energy,” she said.
"Over 2024, we will undertake a vast number of transformative projects as we continue to harness our global strength and build maximum relevance with our key stakeholders.”
Locally, RSM also exceeded growth targets by meeting its 2024 headcount goal of 1,750 staff in November last year. This represented a 16 per cent increase in staff numbers over the past two years.
A raft of appointments at the end of last year, including five partners, two associate directors and an economist, took numbers to over 1,800.
The firm appointed a further three partners and three principles earlier this month.
Its pace of growth reflected a shift in demand away from big four firms’ services to mid-tiers. BDO, Grant Thornton, Pitcher Partners, William Buck and McGrathNicol all reported growth between 15 per cent and 18 per cent in FY23, according to the Top 100 Accounting Firms List compiled by The Australian Financial Review.
A report by research firm McCrindle found that middle-market businesses with an annual turnover between $10 million and $250 million accounted for one-fifth of tax receipts and contributed to 23 per cent of Australia’s total revenue ($645 billion).
The sector’s average revenues also increased by 10 per cent in the last half a decade, it found.
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