Profit at the UK division of Big Four firm Deloitte increased in its latest financial year, despite a decline in revenue due to structural changes. For the year ending 31 May 2025, Deloitte reported revenue of £5.68 billion, down from £5.75 billion the previous year. However, the firm’s distributable profit rose by 4% from £756 million to £789 million, despite economic challenges.
After a decline of over 5% in average profit per equity partner (PEP) in 2024, Deloitte saw a recovery with PEP increasing by 4% to £1.051 million, up from £1.012 million the previous year. The firm’s tax and legal business achieved a 7% revenue growth, reaching £1.33 billion, while audit and assurance revenue grew by 3% to £969 million. The strategy, risk, and transactions advisory business also saw a 3% increase, reaching £901 million.
Conversely, Deloitte’s technology and transformation sector faced a “tougher market,” with revenue dropping by 10% to £1.67 billion as clients delayed investments in large-scale change programmes. Richard Houston, Deloitte UK’s senior partner and CEO, described the results as robust in a complex market, noting that geopolitical factors and economic headwinds have led organisations to manage costs and postpone investments.
Houston emphasised Deloitte’s significant contribution to public finances, with the firm’s total UK tax contribution at £1.78 billion in FY25, including £1.14 billion collected for HMRC and £643 million related to equity partners.
In response to economic challenges, Deloitte focused on technology and cost-effective operations, hiring 3,160 new UK employees, including over 1,900 graduates, apprentices, and interns. The firm promoted 5,500 UK staff, including 60 to partner status, and converted 77 individuals to equity partnership, nearly tripling the previous year’s figure.
Deloitte did not mention layoffs, unlike EY UK, which reportedly involved around 250 UK employees. The firm invested £253 million in salary increases and bonuses, alongside over £64 million in learning and development, an increase from nearly £63 million in 2024.
Despite a leaked memo indicating the 2025 financial year was “below our original plan,” Deloitte highlighted its ongoing commitment to the UK with new offices in Bristol and Aberdeen, and technology delivery centres in Belfast, Cardiff, Manchester, and Newcastle. This investment includes £158 million in technology, up from £135 million in FY24, and the development of the GenAI platform, PairD, generating over one million prompts monthly from UK employees.
Houston expressed confidence in Deloitte’s ability to adapt and thrive, citing the need for continued transformation to meet changing market, technology, and client expectations.
