Financial. Delivering sustainable growth
Despite the difficult circumstances the firm has achieved net revenues of €73.6m, an increase of 2% compared to FY10 (€72.2m).
As a result of considerable fee pressures in the face of the continuing financial crisis the Assurance practice revenue decreased by 3,6% to €23.9m from €24.8m in FY10.
Global Compliance Services
With the global financial crisis continuing, GCS managed to generate net revenues of €25.8m a small decrease of 1.5% compared to FY10 of €26.2m.
Notwithstanding the prevailing financial crisis our Tax practice exhibited, once again, strong growth. It generated revenues of €16.3m representing an increase of 7% over the previous year (€15.3m).
Corporate Support Services
Our expanding legal and corporate support services achieved net revenues €3.4m.
Advisory revenues were €4.2m, an increase of €0.3m compared to FY10. The Advisory practice comprises, Performance Improvement Consulting Corporate Finance/Crisis Management and Human Resources Advisory Services.
Our goal is to continue as the leading professional services firm, always at the forefront of people’s minds, because we aim to be the best. We set the standard and we drive the agenda for our profession. We value our past but look to invest in our future to leave the firm even stronger that when we inherited it.
With nearly 1.000 partners and staff in offices around the island we are able to draw on the knowledge and skills of our people and of colleagues in our global network of firms. We stick to a simple winning strategy: leading in the markets we choose to serve based on quality and being a great place to work for all our people.
We managed to contain our total operating costs to an increase of 4% with the staff costs also recording a 4% increase over the prior year.
Staff Provident Fund Costs
The firm maintains a staff provident fund with 888 members (FY10: 930). The fund, which is a defined contribution scheme had €5.526.000 in contributions during FY11 (€5.550.000 for FY10) and at 30 June 2011 its net assets stood at €40m (30 June 2010: €37m).
As part of the continuous effort of maintaining the best working facilities and keeping abreast with the latest state of technology an amount of €1.0m (FY10: €1.2m) was expended mostly on furniture, equipment and infrastructure.
Total tax contribution
State revenues from the firm emanate from payments of direct and indirect taxes as well as Social Insurance contributions. In FY11 the firm’s partners and staff paid €9.2m (FY10: €9.8m). Further to this the firm paid €8.0m in VAT (FY10: €10.7m) and some €3.0m in Social Insurance Contributions (FY10: €3.0m)
Working capital policy
Debtors and work in progress. The average number of credit days outstanding for the year was 76 (FY10: 74). We also try to reduce the number of days between the time work is carried out and the time of billing it. The average number of days of work in progress for the year was 19 days (FY10: 20 days).
Creditors are paid promptly with the average number of days between receiving and settling an invoice for FY11 standing at 31 days (FY10: 31 days).
The firm’s financing emanates from partners’ capital, retained profits coupled with long term and short term external financing. The firm’s bank lending at year end stood at €19.0m (FY10: €16.1m) as compared to the bank facilities available of €19.9m (FY10: €19.9m).