In the year ending July, operating profits fell by over 7% to £210 million. The average profit per equity partner dropped by approximately 14%, falling from £681,000 to £589,000. The firm attributed the dilution in partner pay partly to a record intake of new partners, pushing the total headcount above 500.

While total revenues flatlined at £1 billion, performance varied across service lines. Audit and deals businesses shrank by 3.7% and 4% respectively, due to “tougher” market conditions, while tax and consulting services saw gains of 3.4% and 5.4% respectively.

This stagnation mirrors trends across the Big Four, where demand has softened following the post-pandemic boom.

BDO is poised to overhaul its global structure, moving away from its traditional network model towards a more unified organisation. As a key player in the network, the UK arm is expected to lead acquisition efforts for smaller firms. While senior partners are discussing external investment, the funding strategy for this expansion remains unclear.

The firm continues to grapple with audit quality issues. BDO UK was recently fined over £6m for misconduct and was identified by the regulator as the worst performer among its peers for audit quality this year.

Despite “economic headwinds”, managing partner Mark Shaw described the performance as robust. Defying predictions that AI would reduce graduate intake, BDO hired 690 trainees, a slight increase on the previous year. Looking ahead, the firm expects growth in its regional hubs to outpace its London operations.