Grant Thornton South Africa announces growth in turbulent times

Revenues increase by 3% to R314-million for year ending 30 September 2009

8 February 2010

Global auditing, tax and specialist advisory services firm, Grant Thornton South Africa, has announced revenues of R314-million for the financial year ending 30 September 2009, a 3% increase on the previous year’s R305-million.

“We’re encouraged by our growth – although small – during a year when business has been dramatically hindered by a difficult global economy,” says Leonard Brehm, National Chairman of Grant Thornton South Africa. Grant Thornton experienced a 10.4% growth in revenues for the 2008 financial year.

Grant Thornton International last week announced combined global revenues of $3.6 billion from its 96 member firms - steady for the year ended 30 September 2009 measured at constant exchange rates but a decline of 9% from 2008 when adjusted for exchange rate fluctuations against the US dollar. Variance using constant exchange rates refers to percentage changes before exchange rate fluctuations in US dollar terms.

During the year, Grant Thornton International appointed new member firms in China, Mozambique and Bolivia. Says Brehm: “The Mozambique member firm forms a vital part of Grant Thornton’s sub-Saharan Africa network. This further strengthens our position to facilitate our clients’ expansion plans, offering cross-border skills and services into the African continent.”

Ed Nusbaum, who took over as global CEO of Grant Thornton International on 1 January 2010 added, "Mainland China presents a huge market opportunity for us and we were delighted to welcome such a significant firm as Jingdu Tianhua. Continued investment in China will remain an important element of our global strategy."

Grant Thornton South Africa’s growth for the 2009 financial year was predominantly in the specialist advisory services business, which includes Tax Consulting, Corporate Finance, Corporate Recovery and Internal Audit services.

Internationally, Assurance services experienced marginal growth achieving 5% growth measured at constant exchange rates, but these were down 4% at $1.6 billion in US dollars against 2008. Assurance services account for around 46% of global dollar revenues. Tax revenues remained steady at constant exchange rates but were down 9% to $763 million taking into account US$ exchange fluctuations. The specialist advisory services business, despite the drop in transaction related work, continued to contribute 25% of global dollar revenues, generating $884 million.

For the first time since its formation 30 years ago, more than half of Grant Thornton global revenues were generated by member firms outside of the US and UK with the China/Hong Kong member firms now amongst the 10 largest in the organisation.

Ed Nusbaum, explained, "I am encouraged by these results. We knew the last 12 months would be challenging and many member firms had to make tough decisions to cut costs and refocus their businesses. The response from the 30,000 Grant Thornton people has been magnificent. To hold our global revenues at constant exchange rates in the face of such harsh economic conditions suggests that our strategy of continuing to build a robust presence in key markets through merger and acquisition, and of investing in our people and in technology is paying dividends.”

“2010 is likely to be another challenging year,” says Brehm. “Legislative changes are likely to have a significant impact on businesses. Grant Thornton South Africa with its wide range of services is well equipped to cope with these changes.”

Ends

For further information contact
Leonard Brehm
National Chairman, Grant Thornton South Africa
+27 (0)11 322 4500

Nico Olwagen
Senior Marketing and PR Executive
+27 (0)11 322 4593 / nolwagen@gt.co.za

Notes to editors
Global combined revenues for year ending 30 September 2009

Global combined revenues for year ending 30 September 2009

About Grant Thornton
Grant Thornton International is one of the world’s leading organisations of independently owned and managed accounting and consulting firms. These firms provide assurance, tax and specialist business advice to privately held businesses and public interest entities. Services are delivered independently by the member and correspondent firms within Grant Thornton International, a non-practicing, international umbrella entity organised as a private company limited by guarantee incorporated in England and Wales.

Grant Thornton International does not deliver services in its own name or otherwise. Grant Thornton International and the member firms are not a worldwide partnership. Grant Thornton South Africa is a member firm of Grant Thornton International Ltd. Any and all references to Grant Thornton International are to Grant Thornton International Ltd.