Accounting firm EY Ireland increased its revenues by 17.3 per cent to €166 million in the year to the end of June 2014 on the back of growth across all of its service lines. This was almost twice the 9 per cent growth of the previous year.
The revenue rise was aided by contracts relating to the establishment of Irish Water and bank stress tests carried out for the Central Bank of Ireland in advance of the single supervisory mechanism being established in Frankfurt later this year. EY carried out tests on AIB, Permanent TSB and Ulster Bank.
In addition, EY increased its headcount by 19.4 per cent, adding 245 jobs in the 12-month period to bring staff numbers to more than 1,500, including 57 partners.
Since the year-end, EY Ireland has appointed six additional partners to the practice and hired 200 graduates.
Results provided to The Irish Times show audit and other assurance services grew by 16 per cent to €113 million, while tax advisory and other non-audit services rose 21 per cent to €53 million.
The increased fee income is likely to have nudged EY into third place among the Big Four accounting firms in Ireland, ahead of Deloitte but behind PwC and KPMG.
Globally, EY reported revenues of $27.4 billion for last year, up 6.8 per cent on the previous period in local currency terms. The UK practice increased fee income by 8.6 per cent. Managing partner of EY Ireland Mike McKerr said: “The market is still very tough. It’s not fully recovered by any manner or means.”
Stagnant fees
In addition, Mr McKerr said client fees have not risen. “It has stopped declining year on year but it’s certainly not growing. It’s all about volume.”
As a partnership, EY is not required to publish its financials. However, Mr McKerr said it increased its profitability last year. He said the Irish economy is far from fully recovered. “The forthcoming budget may well mark a turning point; the end of the austerity era,” he said. “The Government must avoid damaging consumer confidence and continue to focus on the job creation measures that will accelerate recovery.”
Is the economic recovery sustainable? “I certainly hope so. You can see that companies are starting to make more investment . . . But it’s [the downturn] far from over. People have been hit very hard and it will take some time.”
