CANBERRA: Deloitte will pursue further acquisitions in the cloud computing and design sectors to further beef up its technology capacity after reporting a 15 per cent increase in revenue to a record $1.53 billion.
The result, the first for chief executive Cindy Hook and the second consecutive year of double-digit growth, was driven by strong demand across the group’s consulting, risk advisory and assurance and advisory businesses. The firm does not release its profit numbers. Ms Hook, who took over from long-serving CEO Giam Sweigers early last year after 30 years with Deloitte, forecast high single-digit growth for the year ahead and said the firm’s acquisitive growth would continue, albeit at a slower pace than in the past.
“We will continue to be acquisitive for the right capability and the right fit in technology, cloud computing, and enhancing the customer experience and expanding that. Design, I think, will also be a focus,’’ she said. Over the past year the group purchased an identity security and management firm, a specialist cloud consulting company and MashUp, a spatial design firm which has enhanced Deloitte’s customer practice.
Ms Hook said the acquisitions had integrated “incredibly well’’. “Most of our acquisitions are capability-built versus just bulk-up deals. Most of the team members from these groups are coming in and saying ‘Deloitte is a good or better fit than I thought it would be’.’’
Deloitte is the first of the big four accounting firms to release its annual results, although KPMG last week flagged it would release strong annual results in August. Yesterday, KPMG Australia revealed it had signed a deal with IBM Australia to use the technology firm’s Watson supercomputer to conduct audits for major companies, extending a deal signed between IBM and KPMG in the US and Britain.
Ms Hook said she was also focused on investing in artificial intelligence and robotics as companies look to professional services firm to help them deal with disruption to their business models. But she said Deloitte was still making good revenues from its legacy businesses. “You need to have very strong business foundations in these times — so you can be operationally efficient. That goes back to our legacy services of accounting, tax and risk. It is not just about advisory,’’ she said.
“The advisory business is growing very strongly but we are also getting growth in our core. Our audit business grew by double-digit numbers last year.’’ She said confidence in corporate Australia was currently “probably more to the glass half empty’’. “Businesses that are solid and confident, they are looking at how they can find opportunities from disruption. But if you don’t have the fundamentals right, it is far more difficult,’’ she said. Women now make up 42 per cent of the Deloitte board and 29 per cent of the executive committee, up from one to four under Ms Hook’s leadership.
