Deloitte Fee Income
Deloitte UK had a fee income of 3.7 billion pounds in FY20 which is an increase of 8% from the prior year. For FY19, Deloitte UK had a fee income of 3.4 billion pounds. See below for a breakout of Deloitte’s fee incomes over the past five years. Fee income grew on an average of 8.6% over the past five years.
Looking at the break-down of fee income among audit clients and non-audit clients we notice that direct audit fees has increased on an average by 4% while non-audit services to audit clients has increased on an average by 6%. Deloitte is probably the only big4 firm where non-audit services to audit clients is showing an increasing trend. Advisory income has increased on an average by 10% for 5 years. The table below shows the break-down in millions pounds.
Deloitte Quality Report
Deloitte’s UK 2020 transparency report mentions that of the total audits, 76% of the audits have been graded good or limited improvements needed.
The Financial Reporting Council (FRC) published its latest inspection reports on Deloitte in July 2020. Of the 17 audits reviewed, 13 (76%) were graded as good or requiring limited improvements. 3 (18%) and 1 (6%) audits were graded as improvements required and significant improvements required respectively. For FTSE 350 audits, of the 10 audits reviewed, 9 (90%) were graded as good or requiring limited improvements and 1 (10%) audit was graded as improvements required. The summary of Deloitte’s inspection results for the past five years is noted below. In 2015, 82% of audits were graded as good vs. 76% in 2020.
Deloitte FTSE 350 Clients
Deloitte audits 79 of the 350 FTSE companies bringing in a total revenue of 309 million pounds. WPP plc is the biggest client which brings in revenue of 43 million pounds, i.e. 14% of the total FTSE 350 audit fees. BP is the next biggest audit client which brings in 37 million pounds. The top 5 audit clients brings in 49% of the total revenue. All 79 Deloitte audit clients and their audit fee is included in the graphic below:
The top 25 audit clients of Deloitte in UK in the order of audit fee revenues are as follows:
| Company | Auditor | Total ('000) GBP |
|---|---|---|
| WPP plc | Deloitte | 42,700 |
| BP Plc | Deloitte | 36,980 |
| GlaxoSmithKline plc | Deloitte | 30,400 |
| Glencore plc | Deloitte | 22,641 |
| National Grid | Deloitte | 18,000 |
| BAE Systems plc | Deloitte | 10,815 |
| Melrose Industries plc | Deloitte | 9,700 |
| Tesco plc | Deloitte | 9,700 |
| Anglo American | Deloitte | 9,509 |
| Centrica plc | Deloitte | 8,600 |
| TP ICAP plc | Deloitte | 8,059 |
| Airtel Africa plc | Deloitte | 6,380 |
| Ferguson plc | Deloitte | 5,811 |
| TUI AG | Deloitte | 4,600 |
| Helios Towers plc | Deloitte | 4,377 |
| FirstGroup plc | Deloitte | 4,100 |
| Inchcape plc | Deloitte | 3,800 |
| Informa plc | Deloitte | 3,700 |
| ConvaTec Group Plc | Deloitte | 3,094 |
| Man Group plc | Deloitte | 2,703 |
| Marks & Spencer Group plc | Deloitte | 2,700 |
| Signature Aviation plc | Deloitte | 2,700 |
| Unite Group | Deloitte | 2,500 |
| OneSavings Bank plc | Deloitte | 2,444 |
| Kingfisher | Deloitte | 2,400 |
Post a comment on any other metric you would like to know about Deloitte UK or if you need this dataset. Look into our other blog posts on PwC, KPMG, and EY UK. We are starting a new blogpost to collect the salary data to help all current and prospective employees of accounting firms. So if interested, update the form and results will be published soon.
