On the rise: Deloitte’s three years of double digit growth
21 June 2017: Deloitte Australia today reported revenues for the year ending 31 May 2017 (FY17) of $1.76 billion, an increase of 15% over fiscal year 2016 and an impressive third successive year of 15% growth.
Deloitte Australia CEO Cindy Hook commented: “What pleases me most about this year’s strong performance is that our success is shared across all our business units and most of our offices, especially in New South Wales and Victoria. It’s no secret our profession, like many others, faces disruption and pressure on margins. By streamlining and automating aspects of our business delivery, investing in new models, and realising the benefits from prior investment decisions, our earnings growth is consistent with revenue growth."
"Two years ago Deloitte took on a new strategy and made clear choices about the industries, market sectors and clients that we would focus on. We are now seeing some of our highest growth in the areas we identified including health care, financial services and the public sector.
“I’m delighted to say the choices we have made are paying off and we are increasingly sought out as a trusted partner for clients as they transform their businesses.”
Deloitte is now the world’s largest professional services firm and this year announced new global alliances with two technology giants - Apple and Amazon Web Services. Deloitte Australia is working closely with both companies and seeing good opportunities in the market and at the same time continuing to strengthen its existing relationships with major technology partners such as Oracle, Salesforce, and SAP.
Organic growth for Deloitte has been even stronger than in recent years representing 88% of revenue growth in FY17 compared to 76% in FY16. This is the result of a strategic shift in the type of acqusitions being made, moving from immediate revenue accretion to strategically aligned capability building, which will result in more scalable revenues over time. Transactions which closed in FY17 reflect this shift and included:
- SixTree - Providing a platform-led approach to structuring and integrating legacy and emerging technology
- The Explainers - Creative digital consultancy, digital communication studio, business storytelling
- Morse Consulting - Investment and wealth management and superannuation advisory specialists
- Cinder Agency - technical implementation of cloud based marketing platforms such as Salesforce Marketing Cloud
- Kid Neon – Architectural illustration firm with leading experience in VR, 3D and spatial modelling and visualisation
- Torridon Partners - Strategic and financial advisors to companies and government with a focus on resources and infrastructure
- Plenary Networks – Network architecture, security and integration specialist
- Strut Digital - Technology and managed services provider helping companies move to and manage cloud-based IT environments.
Cindy Hook said: “We have a pipeline of future strategic investments we are evaluating to further develop our capability and enable us in building new models to better serve our clients.”
Creating opportunities for leaders
Deloitte’s strong financial performance has resulted in the recent admission of 61 new partners, in addition to the 45 partners who have joined the firm as lateral hires or through transactions over the past year.
“Deloitte has a strong record of investing in the professional development of its people and for promoting from its enviable talent pool. These new partners are the next generation of leaders in their fields and demonstrate our confidence in the future growth of the firm,” Cindy Hook said.
Of the newly promoted partners, 25 are women, or 41% of the intake, up from 33% in FY16. The overall female partner percentage at Deloitte is now 27%, up from 25% in 2016. Almost 40% of the new cohort identify themselves as coming from a culturally diverse background.
Beyond a strong financial performance, Deloitte is also very proud of other achievements this year including being the number one employer-of-choice for graduates as named by Gradconnection, an employer-of-choice for women as recognised by the Workplace Gender Equality Agency and the only professional services firm in the Australian Centre for Corporate Social Responsibility Top Ten list. Deloitte is proud to have invested $20m in our communities.
The FY17 result reflects Deloitte’s long track record of anticipating change and investing wisely to navigate the challenges presented by rapid technological change and economic uncertainty.
Cindy Hook commented: “Innovation is still core to the success of Deloitte and the strategies and capabilities we are putting in place will deliver on the solutions that our clients require. Their needs are changing and we are responding by identifying the issues and trends that affect their business and working together to bring about the best results.
Pivot to Global
“Deloitte Australia is now placing more focus on its global networks and especially Asia, with our senior leaders working more closely than ever with our colleagues in Japan, China, Southeast Asia, India, and New Zealand on how we can bring our capabilities together to deliver better outcomes for clients across the region and the globe.
“We are harnessing the experiences and know how of professionals from across the world’s number one professional services firm, which is enabling us to link the best Deloitte is able to offer globally in responding to the needs of our clients.
“Shared wisdom and global best practices can only be good for all of us,” she said.