RSM UK marks consistent year-on-year growth as it reports strong annual revenue rise
Leading audit, tax and consulting firm RSM UK announces a near 12% (£56.2m) increase in UK annual revenues to a record £543m for its financial year ending 31 March 2024. The results mark consistent year-on-year growth following last year’s 14% revenue increase.
The company grew its total partner profits by 7% to £160m (profits per equity partner were £708,000 on average, up from £661,000 in the prior year).
This strong momentum, fuelled by a major investment in its people and increased productivity, continues its drive to become first choice advisers to middle market leaders globally.
During the full financial year, RSM UK increased its total headcount by 15% (up from 13% in 2023 and 4% in 2022) to 5,420 people.
As part of its strategic ambition to invest in its people, and so strengthen the firm from within its own ranks, the firm delivered on a series of goals it set out as part of its “Grow our own” strategy.
RSM UK promoted 13% more people than the year prior. 581 people across the firm were promoted into roles to help drive growth and investment in existing talent; 13 people were promoted to partner, equalling the same number during the previous year, and RSM supported 1,863 people studying for professional qualifications, an increase of 26% over 2023.
The year also marked the group’s most significant steps yet to invest in the business for the future. The successful completion of a major share buyback in 2023 enabled RSM UK to become wholly owned by the firm’s working partners and strengthen its ability to create long-term sustainable value and growth.
This set the tone for the next stage of growth, and so paved the way for a significant investment by RSM UK in RSM Ireland in November 2023 – a move that expands the group’s ambition to build growth, support existing talent and gain greater market share.
Significant funds were directed towards technology, brand, workplaces and people – four critical areas recognised as key to propelling the business forward.
The firm’s Audit and assurance service line delivered another impressive year within a heavily regulated environment with a 20% increase in revenues to £165.2m. RSM UK’s commitment to audit quality was demonstrated through the significant investment into the systems and processes that support the service line. The product of this investment and the commitment to a quality culture was demonstrated through the successful implementation of the International Standard on Quality Management (ISQM1) and the high standard of regulatory review outcomes achieved.
Tax services grew by 11% from £145.3m the prior year to £161.3m this year. This performance was underpinned by a very strong advisory performance alongside its core offering to clients.
The Consulting business reported on a robust financial performance with revenue increasing 6.2% to £216m. This was achieved during a year in which the firm undertook major steps to reposition the operating model of this critically important service line to better serve its clients.
Beyond the financial performance RSM UK remains committed to making a difference. The RSM UK Foundation and the firm donated over £1m to charities throughout the UK (up on £0.7m last year) and provided 8,731 volunteering hours for local charities and community groups (6,966 in 2023). The firm also achieved a 61% reduction on its 2020 pre-pandemic emissions, a notable increase on its 53% reduction in 2023.
Rob Donaldson, CEO for RSM UK said: “This year marked our strongest financial year yet – a remarkable milestone having achieved it against a backdrop of virtually no economic growth in the UK. Our progress, and the momentum gained from our consistent year-on-year performance, continues to drive confidence and with that the commitment to reinvest in this business, and our future.
“The nature of our growth and how we’re achieving it is key – this isn’t just about numbers. We’ve been laying the groundwork for long-term success by evolving our ownership and organisational structure, and by putting more money back into the business than ever before. We’ve invested heavily in technology solutions, market leading insight, our workspaces and in our people and core functions. Our decisions to invest in those areas, we believe, will create greater opportunity for the next generation of partners and wider talent. It will also set us on our path to be known as the smart people to know, and the go-to firm for middle market leaders globally.
“On behalf of the Board, I want to convey sincere thanks to all those who contributed so fully to supporting our clients, and this fantastic business. Their effort and dedication to helping RSM UK grow makes me extremely proud and confident for our future.”
