Ernst & Young has announced combined global revenues of $24.4 billion for the financial year ended June 30, 2012, compared with $22.9 billion in 2011. Revenues grew 7.6 per cent.

Growth in service lines was almost entirely organic

The global firm said the business model and strategy continued to weather the economic turmoil as all service lines showed growth. Assurance revenues were up 4.1 per cent, tax seven per cent, transactions 9.4 per cent, and advisory 16.2 per cent. Growth in service lines was almost entirely organic, with acquisitions accounting for less than one half of one percentage point.

“FY12 remained a dynamic and volatile period in the world economy,” Ernst & Young global chairman and chief executive Jim Turley said. “The ongoing sovereign debt crisis in Europe, the impending ‘fiscal cliff’ in the US, and signs that the emerging-market economies are slowing all point toward a challenging business climate in the months ahead.

“We will also continue to face regulatory uncertainty in many jurisdictions around the globe. That said, we are pleased that our business showed good results, the best since 2008, in the midst of what has been several years of uncertainty.”

He identified the strongest performing sectors, all with double digit growth, as the automotive, life sciences, mining and metals and oil and gas sectors.

As a result of the improvement in the business, Ernst & Young has grown its headcount to 167,000, an increase of more than 15,000 people in the fiscal year. Globally, 25 per cent of partners this year are women, up from 23 per cent last year and 20 per cent in 2010.

“Our success in the emerging markets is largely the result of a strategic investment programme started six years ago,” Ernst & Young said.

“Since the inception of this programme, we have invested more than $1.8 billion in our geographies, the majority of which has been earmarked for the emerging markets.”

The results have been visible in 2012, as Brazil saw organic revenue growth of 17.5 per cent, while India, Africa, China and the CIS increased revenues by 19.8, 10.2, 11.8 and 15.6 per cent.