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Accounting and Financial Management - UK - January 2015

Published By :

Mintel

Published Date : Jan 2015

Category :

Banking

No. of Pages : 99 Pages


Growth in the UK accounting and financial management market has been restricted by the sluggish economy in recent years. However the market has started to show stronger growth in 2014 in line with the more robust economic recovery. Consultancy is expected to remain the strongest growth sector, as accountancy firms continue to strengthen their consultancy capabilities in a bid to reduce their dependence on more mature accountancy functions and to become truly multi-disciplinary professional services businesses.

Executive Summary

The market
UK market for accounting and financial management up by an estimated 5% in 2014
Figure 1: Segmentation of the UK market for accounting & financial management, by type of service, 2010-14
Growth in the audit & accounting sector has been hampered by the sluggish economy in recent years
The tax services sector started to recover in 2012 and has demonstrated growth since
Consultancy is now the strongest growth sector of the accounting & financial management market
Income from corporate finance and business recovery services accounts for around 12% of the total market
Figure 2: Forecast UK market for accounting & financial management, 2014-19
The UK market for accounting and financial management is expected to increase in real terms in each year to 2019, developing ahead of anticipated GDP growth
Consultancy is expected to continue to gain share of the overall accounting and financial management market
Audit & accounting and tax services are relatively mature sectors and their share is likely to moderately decline over the next five years
Demand for corporate finance and business recovery is expected to develop in line with the overall market
Figure 3: Forecast segmentation of the UK market for accounting & financial management, by type of service, 2014 and 2019
Market factors
New UK and EU regulatory framework for audit market
Rise in audit threshold shrinks market for auditing small company accounts
Government clampdown on tax avoidance schemes
Rise in private sector businesses and self-employment provide opportunities for accountants
Figure 4: Number of private sector businesses in the UK, 2001-14
Companies
What we think

Introduction

Definitions
Methodology
Abbreviations
Market positioning

UK Economy

Overview
Figure 5: UK GDP quarterly development, 2003-14
Figure 6: UK GDP in economic downturns and recoveries since 1979
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Business investment
Imports
Exports

Market Factors

Key points
Legislation and government policy
CMA audit order and new EU regulatory framework on statutory audit
New audit threshold
EU Accounting Directive 2013/34/EU to have significant impact on small company financial reporting
New UK accounting standards
Taxation of LLPs
Government clampdown on tax avoidance schemes
Break-up of Audit Commission and tendering of contracts to private sector
Companies Act shake-up
Scottish tax devolution
Other market factors
Rise in the number of active businesses as the UK is on road to economic recovery
Figure 7: Number of private sector businesses in the UK, 2001-14
Figure 8: Number of private sector businesses in the UK, 2001-14
Figure 9: Number of VAT and/or PAYE registered enterprises in the UK, by industry group and turnover size band, 2014
Self-employment higher than at any point over past 40 years
Figure 10: Self-employed workers in the UK, 2003-14
Trend in insolvencies and business recovery
Figure 11: Number of company insolvencies, receiverships and administrations in England & Wales, 2004-13
Trends in M&A activity
Figure 12: Mergers and acquisitions involving UK companies, 2004-13
Number of listed companies on a downward trend
Figure 13: Number of main market and AIM listed companies, 2007-14
Figure 14: Number of main market and AIM listed companies, 2007-14

Market Size & Segmentation

Key points
Overview
Figure 15: The UK market for accounting & financial management, 2010-14
Figure 16: The UK market for accounting & financial management, 2010-14
Market segmentation
Overview
PwC is top FTSE100 auditor
Figure 17: Segmentation of the UK market for accounting & financial management, by type of service, 201014
Figure 18: Segmentation of the UK market for accounting & financial management, by type of service, 2010 and 2014
Audit & accounting
Figure 19: UK fee income from audit & accounting services, 2010-14
Tax services
Figure 20: UK fee income from tax services, 2010-14
Consultancy
Figure 21: UK fee income from consultancy services, 2010-14
Figure 22: UK fee income from consultancy services, 2010-14
Corporate finance & business recovery
Figure 23: UK fee income from corporate finance & business recovery services, 2010-14
Overseas trade in accountancy services
Figure 24: International trade in accountancy services, 2009-13
Figure 25: Exports and imports of accountancy services, 2009-13

Market Trends & Issues

Key points
Market trends & issues
Dominance of the Big Four in audit market unlikely to subside any time soon
Rise in audit threshold threatening revenue of smaller accountancy firms
Growth in consultancy and breadth of advisory services offered
Accountancy firms increasingly adopting cloud and mobile technologies
Rising demand for ‘big data’ and digital analytics tools
Role of content marketing and social media
Forensic accounting sector on the rise

Industry Structure

Key points
Industry development
Figure 26: Top 20 accountancy firms in the UK, by fee income, 2014
Accountancy firms move into legal services
Mid-tier firms are on consolidation course
Figure 27: Analysis of the changes in the structure of the UK accounting, bookkeeping, auditing and tax consultancy industry, 2010-14
Structure by employment
Figure 28: Analysis of the employment structure of the accounting, bookkeeping, auditing and tax consultancy industry, 2013 and 2014
Structure by turnover
Figure 29: Analysis of the financial structure of the UK accounting, bookkeeping, auditing and tax consultancy industry, 2013 and 2014
Figure 30: Analysis of the financial structure of the UK accounting, bookkeeping, auditing and tax consultancy industry, 2014

Company Profiles

Baker Tilly UK Holdings LTD
Figure 31: Segmental turnover analysis of Baker Tilly UK Holdings, 2014
Figure 32: Financial Analysis of Baker Tilly UK Holdings, 2010-14

Bdo Llp

Figure 33: Financial Analysis of BDO, 2010-14

Deloitte LLP

Figure 34: Segmental turnover analysis of Deloitte, 2014
Figure 35: Financial Analysis of Deloitte, 2010-14

Ernst & Young LLP

Figure 36: Segmental turnover analysis of EY, 2014
Figure 37: Financial Analysis of Ernst & Young, 2010-14

Grant Thornton UK LLP

Figure 38: Segmental turnover analysis of Grant Thornton, 2014
Figure 39: Financial Analysis of Grant Thornton UK, 2010-14

Kpmg Llp

Figure 40: Segmental turnover analysis of KPMG, 2013
Figure 41: Financial Analysis of KPMG, 2009-13

Mazars LLP

Figure 42: Segmental turnover analysis of Mazars, 2013
Figure 43: Financial Analysis of Mazars, 2009-13

Moore Stephens LLP

Figure 44: Segmental turnover analysis of Moore Stephens, 2013
Figure 45: Financial Analysis of Moore Stephens, 2009-13

PriceWaterhouseCoopers LLP

Figure 46: Segmental turnover analysis of PwC, 2014
Figure 47: Financial Analysis of PwC, 2010-14

Smith and Williamson Holdings LTD

Figure 48: Financial Analysis of Smith & Williamson Holdings, 2010-14

Market Forecast

Key points
Market prospects
Market growth to be sustained over the next five years
Accountancy firms to remain on acquisition trail
Figure 49: Forecast UK market for accounting & financial management, 2015-19
Figure 50: Forecast UK market segmentation for accountancy & financial management, by type of service, 2015-19
Audit and accounting
Tax services
Consultancy
Corporate finance and business recovery
Figure 51: Forecast UK market segmentation for accounting & financial management, by type of service, 2015-19

Further Sources & Contacts

Trade and professional associations
Trade exhibitions
Trade magazines

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