Ambitious accountants Deloitte gearing up for growth

Mar 15 2010 by Peter McCusker, The Journal

ACCOUNTANTS and business advisers Deloitte has unveiled ambitious growth plans as it prepares to move into larger offices in Newcastle.

The regional office of one of the big four accountancy firms anticipates turnover rising from nearly £20m in 2009 to an around £25m a year by 2013.

It also expects to see staff numbers rising from 165 to over 200 during that time as its increases its portfolio of work in the public sector and further develops its private sector offering.

In May the professional services firm will relocate from its current 14,000sqft Grey Street base into 22,500sqft of offices in Trinity Gardens on Newcastle Quayside.

Paul Williamson, senior partner at Deloitte’s Newcastle office, said he expects 2010 and 2011 to be relatively flat but anticipates a strong improvement after that.

“Our growth over the coming years will not be linear.

“The next two years will not see any rapid advances but from 2011 and into 2102 we expect to see a return to the double digital growth we were seeing before the recession.”

Deloitte had been growing steadily until the recession and say the office move will give it the floorspace to accommodate its future growth.

But, like many of the North East’s professional services firms, it did not escape the recession unscathed and was forced to axe its six-strong North East corporate finance team as the deal market crashed in late 2008 and 2009.

It had developed a particular expertise in the realm of private equity-backed, leveraged buy-outs and it suffered when these deals came off the rails.

However, Mr Williamson said there are signs of a return in merger and acquisition activity, and its North East clients will be served by its Leeds-based corporate finance team, whose partners are regular visitors to the region.

“The main areas for future growth will be in the public sector where there is scope to our audit and advisory work. Cost reduction is going to be a key driver in the public sector over the coming years.

“There will be a move for authorities to outsource some of their work and to merge some functions with neighbouring authorities to save costs.”

Deloitte expects further growth in its audit team with new public sector partner Paul Thomson already bringing in some large contracts.

Its tax team which has doubled in size in the last five years is expecting further rapid growth especially with the looming 50% tax rate.

Mr Williamson said: “We are continually looking to identify new areas where we can increase or develop specialist areas for the firm and with changes in legislation and tax increases there is likely to be more tax planning opportunities moving forwards.”

Deloitte has acquired the entire third floor at One Trinity Gardens.