EY Fee Income
EY UK had a fee income of 2.6 billion pounds in FY20 which is an increase of 5% from the prior year. For FY19 EY UK had a fee income of 2.4 billion pounds. See below for a breakout of EY fee incomes over the past five years. Fee income grew on an average of 5% 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 6% while non-audit services to audit clients has decreased on an average by 8%. Advisory income has increased on an average by 7% for 5 years. The table below shows the break-down in millions pounds.
EY Quality Report
EY’s UK 2020 audit quality report mentions that of the FTSE 350 audits, 78% of the audits have been graded good or limited improvements needed. This is an improvement from the 40% score noted in 2014.
The Financial Reporting Council (FRC) published its latest inspection reports on EY in July 2020. Of the 14 audits reviewed, 10 (71%) were graded as good or requiring limited improvements. 3 (22%) and 1 (7%) audits were graded as improvements required and significant improvements required respectively. For FTSE 350 audits, of the 10 audits reviewed, 7 (78%) were graded as good or requiring limited improvements. 1 (11%) and 1 (11%) audits were graded as improvements required and significant improvements required respectively. The summary of EY’s inspection results for the past five years is noted below. In 2015, 85% of audits were graded as good vs. 71% in 2019.
EY FTSE 350 Clients
EY audits 68 of the FTSE 350 companies bringing in a total revenue of 225 million pounds. Shell is the biggest audit client of EY which brings in total revenue of 41 million pounds i.e. 18% of the total FTSE 350 audit fees. The top 5 audit clients collectively brings in 55% of the total audit fee revenue (a pretty significant concentration!). All 68 EY clients and their audit fee is included in the below graphic.
The top 25 FTSE 350 audit clients of EY in UK in the order of audit fee revenues are as follows:
| Company | Auditor | Total ('000) GBP |
|---|---|---|
| Royal Dutch Shell Plc | EY | 40,754 |
| Royal Bank of Scotland Group plc | EY | 34,500 |
| Vodafone Group plc | EY | 22,858 |
| CRH plc | EY | 16,085 |
| RELX plc | EY | 8,900 |
| Associated British Foods plc | EY | 8,800 |
| Imperial Brands Group | EY | 7,200 |
| International Consolidated Airlines Group SA | EY | 6,070 |
| InterContinental Hotels Group plc | EY | 5,887 |
| Investec Plc | EY | 5,646 |
| Schroders plc | EY | 5,600 |
| London Stock Exchange Group plc | EY | 5,000 |
| Sage Group plc | EY | 5,000 |
| Sainsbury (J) plc | EY | 4,000 |
| Virgin Money UK plc | EY | 3,980 |
| IMI plc | EY | 3,100 |
| Evraz plc | EY | 3,019 |
| Petrofac | EY | 3,019 |
| Tate & Lyle plc | EY | 2,600 |
| 3i Group Plc | EY | 2,500 |
| SSE plc | EY | 2,180 |
| Phoenix Group Holdings Plc | EY | 1,970 |
| Beazley plc | EY | 1,811 |
| UDG Healthcare plc | EY | 1,699 |
| Fresnillo | EY | 1,545 |
Post a comment on any other metric you would like to know about EY UK or if you need this dataset. Look into our other blog posts on PwC, KPMG, and Deloitte 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.
Do read our other blog posts.
