Praxity posts 14.2% annual growth to reach all-time high

Already the world’s largest alliance of independent accountancy firms, Praxity has announced 14.2% annual revenue growth, to reach an all-time high of $7.94bn.

Growth at a glance

Praxity’s global revenue has grown in every region and every service line, primarily through organic growth, despite the continued challenges of the pandemic.

Some of the highlights include:

• Growth increased from 9.1% to 14.2%
• Fee income increased from $6.96bn to $7.94bn
• Strong growth across all service lines
• Increased revenues in all regions
• 18 new offices around the world

What does this mean for our clients?

As members of the Alliance it allows us to service our clients current and future international needs through the 60,000 professionals and 780 offices in 120 countries.

These results highlight the success of Praxity member firms, such as ourselves, in adapting to the needs of businesses dealing with issues such as the impact of Covid-19, climate change, retention, remote working, and digitisation.

Praxity chairman Phil Verity described the latest global revenues as “very encouraging.” He said: “It shows the underlying strength and health of the member firms in the Alliance and the quality of management in those member firms.”

Global revenues increased from $6.96bn in 2020 to $7.94bn in 2021, indicating member firms have adjusted well to the challenges of the pandemic and other disruptors. “This is more than a bounce back,” Phil explained. “It’s the start of a longer-term trend that shows Praxity member firms are uniquely positioned for growth. It reflects how member firms are responding to clients’ needs; to support deals, transactions, advisory or assurance needs. Overall, it demonstrates how strong the Alliance is.”

Strong performance in audit and advisory

Revenues for Audit and Accountancy – by far the biggest income generator for the Alliance – increased 14% to $4.21bn. This indicates the “increased opportunities that member firms are seeing as they seek to work with larger clients and those businesses with more international operations”, Phil said.

There was strong growth in Advisory services (up 15% to $1.39bn), reflecting stronger global deals activity and a greater willingness of clients to draw on consulting and advisory support.

Tax advisory also performed well, with revenues up 12% to $2.01bn. “I am delighted to see double-digit tax growth which is a major contributor to the Alliance revenue. With balanced growth across all service lines, member firms are taking this as an opportunity to invest and strengthen their teams,” Phil commented.

Combined global revenues grew in all regions of the world, buoyed by the addition of 18 new offices worldwide. Asia Pacific (including Australia and New Zealand) recorded strongest growth, up 21% to $1.24bn. US and Canada revenues, which account for more than 50% of the total income of the Alliance, grew 15% to $4.43bn.

EMEA revenues grew 9% to $2.18bn, mainly due to strong business in Europe (up 9% to $1.99bn), while Africa and Middle East income grew 8% and 13% respectively. Revenues in Latin America (including Mexico and the Caribbean) rose 13%, reflecting a successful strategy to extend reach into less well represented regions to achieve greater global coverage.

Growth trends, awards and developments

The figures for 2021 mean Praxity has recorded strong growth every year since it was created in 2007. This consistent growth reflects the outstanding performance of members firms together with improvements to Praxity’s knowledge-sharing platform.

A focus on continuous development helped Praxity win Association of the Year in the Digital Accountancy Awards 2021, the fifth time the Alliance has won the award.

Latest developments include enhancements to Praxity’s virtual global conference capabilities and the development of a Mergers and Acquisitions portal to provide a searchable listing of buyers and sellers across the globe.