Deloitte has enjoyed a stellar year in its latest financial year, lifting revenues by double digits to over $2.5 billion. The strong growth means Deloitte is – following years of catch-up – seriously challenging PwC’s place as the largest Big Four by revenue in Australia.

In its financial year that ended 31 May 2022 (FY22), each of Deloitte’s five business units booked double-digit growth rates, with Consulting, Financial Advisory and Risk Advisory each recording more than 20% growth.

“I am very proud of our performance this past financial year, headlined by revenue growth, the significant strengthening and scaling of our Australian team, and a surpassing of pre-Covid-19 profitability levels,” said Adam Powick, Chief Executive Officer of Deloitte in Australia.

“The pace of growth reflects the strength of our multi-disciplinary business,” Powick added.

For Consulting, FY22 was a milestone year, with the division breaking through the $1 billion revenue barrier for the first time. Deloitte Consulting operates with three labels in the market: Deloitte Consulting, Monitor Deloitte (strategy consulting), and Deloitte Digital (digital and technology consulting).

Ellen Derrick, Managing Partner of Deloitte Consulting, said: “I am proud of the impact we had in realising our clients’ transformation ambitions and leading on the issues of our time – like our work with WA Health to modernise their statewide workforce system, our engagement with a global resources company to support their decarbonisation journey, and our leadership in the redevelopment of MyGov to underpin government service delivery.”

Meanwhile, Financial Advisory surpassed the $350 million revenue mark. David McCarthy, Managing Partner of the division, said: “We’re proud to have achieving a third year of highly profitable growth and influential brand impact. With capital markets bouncing back we were proud to be involved in such marquee growth deals such as Cranky Health, Telstra InfraCo and Crown as well the Probuild restructuring deal.”

“We experienced strong growth across our Advisory practices with sustained demand for services in areas such as mergers & acquisitions, digital transformation, cyber, data, climate and decarbonisation, conduct, workforce transformation, legal, and infrastructure,” stated Powick in Deloitte’s FY22 annual report.

In Audit & Assurance, Deloitte saw its revenu lifted by several new account wins, including ASX100 clients Aurizon, Boral and CSL.

Across the twelve months of FY22, Deloitte closed 14 transactions: Fusion Labs, Paxton Partners, Sliced Tech, PDS Group, Bluefield Asset Management, Magia Solutions, Siggins Miller, The Checkley Group, Blended Digital, New Republique, Venntifact, Octes, Entrago, and Intellify.

These transactions made up 18% of FY22 growth, with 82% fuelled by organic growth.

Deloitte also booked strong profit growth, with partner profit up by 15%. “One of our key goals this year was to try to get our underlying profitability back above the pre-Covid-19 levels. Very pleasingly we have achieved this and this provides us with a strong commercial foundation and an ability to invest appropriately back into the growth and future of our practice,” Powick said.

The outlook for FY23

Deloitte commences its FY23 year with nearly 1,000 partners and close to 12,000 employees. “We are approaching the year ahead with thoughtful optimism given the strength of market demand, the quality of our team, and the robustness of our business foundations,” concluded Powick.

Globally, Deloitte is the largest of the Big Four, with revenues of over US$50 billion (number two PwC generated US$45 billion its latest financial year). In Australia, PwC has been leading the way for years, although the firm will have to maintain its current revenue of $2.6 billion* (or shrink marginally) in order to remain ahead of arch rival Deloitte.

* PwC’s $2.6 billion includes $400 million from disbursements and revenue from overseas entities.