- Europe: 79% fee income increase
- Audit and accountancy: 17% fee income growth
- Tax: 15% fee income growth
- Consulting/advisory: 57% fee income growth
- Nine new member firms added across four continents
- Headcount: 17% increase in staff to nearly 37,500 across
- 112 countries
RSM International, the seventh largest global network of independent audit, tax and advisory firms, is pleased to announce an 18% increase in global fee income, year-on-year, to US$4.4 billion, for the financial year ending 31 December 2014.
Fee income was up 79% in Europe, 8% in North America, 22% in Latin America, 13% in Africa, 9% in Middle East and North Africa, and 2% in Asia Pacific.
Audit and accountancy fees increased by 17% to US$2.2 billion, tax grew by 15% to more than US$1.3 billion, and consulting/advisory was up 57% to over US$838m.
Jean Stephens, CEO of RSM, said: “We have had a very strong year. We have driven growth in all continents and across all our sectors. These results can be attributed to our focus on strategies for continued consolidation, our advanced client-growth programmes for providing seamless services across borders, and our uncompromising attention to providing the highest possible quality services to our clients.”
RSM appointed nine new member firms across four continents: Africa and the Middle East (Benin, Burkina Faso, Cameroon, Ghana and Uganda), Asia Pacific (Myanmar), Europe (Estonia and the UK) and Latin America (Panama).
In the world’s key economies, RSM has had strong results. In April 2014, Baker Tilly UK became RSM’s UK member firm. Baker Tilly is the UK’s seventh largest accounting-based firm, with around 3,500 partners and staff and a fee income of over £300m. In the USA and China, both firms have experienced strong organic growth. In the US, RSM member firm, McGladrey - the 5th largest provider of assurance, tax and consultancy services in the US - saw an increase of 10%. Similarly in China, the RSM member firm grew by 8%.
The number of national firm mergers increased with member firms enhancing their client service offering in their respective countries. Significant mergers include in Brazil, where a merger of assurance practices created RSM Brasil – with a fee income of US$20.5m (an increase of 35%), and in Norway, where RSM Hasner Kjelstrup & Wiggen AS now has a fee income of US$28.9m – (an increase of 33%).
RSM’s global growth led to an increase in headcount of 17% to nearly 37,500 staff working across 732 offices and 112 countries.
The network members continue their strategy of providing the highest quality services to internationally active, growth-focused, entrepreneurial organisations.
Jean Stephens added: “We are in a strong position as we begin this New Year. The quality of clients and people we are attracting is world class. The network is energised by our achievements and we are looking forward to continuing this drive to bring further growth and success to our member firms and their clients during 2015.”
“The industry will continue to be driven by macro issues, including audit reform and the OECD proposals for minimising tax avoidance and creating a more appropriate tax infrastructure for the internet economy. We are pleased that the OECD’s work has been inclusive of the emerging markets as this is only fitting given the increasingly globalised economy.”
In Europe, RSM saw particularly strong fee growth in Finland (53%), Greece (47%), and Switzerland (33%). Strong growth was also seen in the Asia Pacific region including in Malaysia (25%), Singapore (17%), Indonesia (12%) and New Zealand (20%).
In 2014, RSM was delighted to continue its lead sponsorship of the European Business Awards. The awards saw over 24,000 companies from 33 countries enter the competition - 40% more than last year.
2014 saw RSM win International Accounting Bulletin’s Network of the Year 2014 Award. The Network of the Year award recognises networks that have demonstrated strong growth and operational excellence over the past 12 months.
In 2014, RSM celebrated its 50th anniversary. A highlight of the year was the RSM World Conference in Barcelona from 27-31 October 2014, at which over 300 leaders from RSM member firms around the world met to discuss building on the network’s success, industry and professional topics, client service and leadership. Another milestone was RSM’s annual RSM World Day, on 18 September this year, during which RSM members around the world engaged with national and local charities through volunteering and community work, and other charitable giving activities.