RSM UK underlines drive for increased market share as it reports annual revenue rise
Leading audit, tax and consulting firm RSM UK announces a 13% (£49m) increase in UK annual revenues to £425.4m for its financial year ending 31 March 2022. The results underscore the firm’s continued success in capturing further market share.
With 354 partners across the firm, the annual revenue generated equated to £1.20m per partner (increasing from £1.04m in 2021). Profit before tax for the year, after partner remuneration, was £11.5m (increasing from £10m) amounting to a 15% increase.
During the full financial year, the firm recruited over 650 graduates and school leavers, compared with 410 the previous year, and promotion numbers reached an all-time high. The record intake is part of the firm’s strategic intention to strengthen the firm from within its own ranks, and over the long term, to help become first choice advisers to middle market leaders globally.
2022 was also the year in which the company launched a share buyback programme to facilitate an exit route for those retired partner shareholders wanting to realise their investment and to enable working partners to secure voting control of the firm. This strengthens the firm’s ability to create long-term sustainable value and growth.
That transaction saw over 90% of those shares owned by former partners being sold to the RSM partner benefit trust (PBT). In that transaction 215 shareholders sold all or part of their investment. As a result, less than 5% of RSM UK shares are now held outside the working partners and PBT.
The firm’s Audit and assurance service line delivered another exceptionally strong year within a heavily regulated environment with an 18% increase in revenues to £114.2m.
Tax advisory grew by 10.9% to £113.1m with strong growth in our advisory offering across corporate taxes and employment solutions.
Within the Consulting business which turned over £198.1m in total (an 11.5% increase), Corporate Finance grew 38.7% to £49.1m with significant growth in the due diligence and mergers and acquisitions teams, supported by a buoyant mergers and acquisitions market alongside. Risk assurance increased its revenues by 27.9% to £36.2m. Accounting and business advisory saw steady growth of 2.5% to £72.8m.
Rob Donaldson, CEO for RSM UK said: ‘Despite the turbulence of the past 24 months or more, our people have remained focused on supporting our clients and growing our business. We are determined to build a strong, sustainable, dynamic firm. One that gives confidence to our people and clients. That’s why we’re investing heavily in the long-term growth of our business to strengthen and expand our capability to help capture the increased opportunity for larger mandates in the market.
‘So, it is pleasing that I and the Board reflect on another year of record figures and outstanding progress – an achievement made all the more impressive by the tremendous challenges we have faced together.
‘On behalf of the Board, we would like to convey our sincere thanks to all those who contributed so fully to supporting our clients, and this fantastic business. My colleagues continue to flex, adapt and choose a better way forward. So, I’m confident that together, we will continue to evolve and succeed.’
