Significant audit wins helped EY Australia pull in $1.785 billion

Dan Kitwood/Getty Images
  • Full year revenue in Australia at professional services firm EY was $1.785 billion, up 9.8%.
  • External Audit was up 6.3% to $375 million.
  • CEO Tony Johnson says acquisitions are ahead.

EY Australia’s full year revenue jumped 9.8% to $1.785 billion on the back of M&A market activity, significant audit wins, and robust demand for people advisory and digital consulting services.

CEO Tony Johnson says all service lines and sectors grew in the year to June.

External Audit was up 6.3% to $375 million after winning significant engagements including BHP, Ardent Leisure, Beach Energy, Primary Health and RACQ.

Demand from organisations seeking to support their people through change programs boosted fees in EY’s People Advisory Services division by 11.3%.

“It is a credit to the smarts and work ethic of our partners and every one of our 6000 people who have been agile, bold and confident in a demanding and disrupted environment,” says Johnson.

“More companies recognise that investing in a strategic people agenda will drive greater profitability, particularly as teams become more global, diverse and complex, so we expect demand for leadership and culture related services to continue growing.”

Transaction Advisory Services had double digit growth, in part due to infrastructure and M&A lead advisory.

EY is currently advising on more than $100 billion of new projects, in health, human services, transport, social housing, water and defence.

The professional services firm is also seeing demand for digital transformation services, cyber security, robotics, data analytics and risk management advice.

Johnson says acquisitions will continue to feature in the firm’s future.

“Acquisitions absolutely have to be part of the growth strategy, but it has to be measured,” he says.

“We will buy in areas that have the biggest tailwinds behind them, where clients have a real hunger for those services, and where we have pent up demand.”

Advisory is projected to be the fastest growing part of EY’s business in 2019.

“Digital and automation are embedded in all parts of our business and that is where the future lies and where the growth will come from,” says Johnson.

“This year we asked twelve graduates with engineering and finance backgrounds to explore for twelve weeks how we turbo charge the use of data analytics and robotics on our audit engagements.”

Competitor KPMG Australia earlier this month posted a 9.2% rise in revenue to $1.64 billion in the year to June.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.